A number of items including some foreign and locally-manufactured food products will no longer attract the Value-Added Tax (VAT), Minister of Finance Winston Jordan announced during his 2015 Budget presentation yesterday.
The APNU+AFC government had promised prior to the May 11 general elections that should they get into office, they would immediately implement a phased reduction of VAT and the removal of VAT from food and other essential items.
Jordan did not announce any reduction in the VAT yesterday but proposed an amendment to the VAT Act which would see a number of items attracting zero VAT. These items include yogurt, cereals, fresh carrots, milo and Ovaltine, Nestum, mustard and mayonnaise, locally-produced fruit juice, locally-made chowmein, vinegar, locally-made uncooked pasta, ketchup, chicken sausages in packets, locally-produced Chinese sauce and baking powder.
The other items that would not attract VAT include liquid detergent, household cleaning agents, rolls of paper towels, liquid detergent, household cleaning agent, and computer printers for non-commercial use.
“Mr Speaker, it is our fervent hope that retailers will pass on the benefit from the removal of VAT from these items to the consumer, through the lowering of their prices. The estimated loss of revenue is $680 million,” Jordan said.
