The reduction of value-added tax (VAT) from 12 percent to 10 percent is going “very smoothly”, according to Minister of Economic Affairs Michael Halkitis, who added yesterday that Bahamians have already started to save money.
“We haven’t had any hiccups that I’ve heard of but if we have any, we’ll deal with them; but it’s going very smoothly,” Halkitis said.
“About a week ago, we had a virtual seminar with some business people who had expressed some concerns, so they could have their questions. It was very well attended and so, since then, everything has gone smoothly.
“I believe people have already begun to experience the savings and as the days and weeks go on, we’ll have more and more people experience the savings that it brings.”
Halkitis said businesses were given a 90-day grace period to change the physical prices on items.
He said anyone who is still being charged 12 percent VAT should contact the Ministry of Finance, the Ministry of Economic Affairs or the Department of Inland Revenue.
The Value-Added Tax (Amendment) (No.2) Bill, 2021 came into force on January 1, 2022. It reduced the VAT rate from 12 percent to 10 percent and removed the zero-rated application from several items known as breadbasket items.
Additionally, it removed the zero-rated application from medicines and medicinal drugs, the majority of which already attracted VAT.
Prime Minister and Minister of Finance Philip Brave Davis has said his government’s decisions on VAT are supported by “data, research and consultations with local and global experts”.
“We considered every scenario possible and, at the end of our research and consultations, we were confident that we were making the right choice,” he said.
The post Halkitis: New VAT regime running smoothly appeared first on The Nassau Guardian.
source https://thenassauguardian.com/halkitis-new-vat-regime-running-smoothly/
No comments:
Post a Comment