Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh has announced the removal of Value Added Tax (VAT) on Cement with effect from today April 29, 2022.
A statement from the Ministry of Finance said that the Government had previously announced in Budget 2020, the removal of VAT on building and construction materials where VAT was imposed after 2014. At the time that this measure was implemented, cement was not impacted because cement had previously attracted VAT prior to 2015.
“Government’s removal of VAT on cement reflects recognition of the importance of cement as a key input for the construction of residential dwellings as well as commercial buildings, and in line with Government’s vision for providing relief to citizens as well as to support the housing drive. This measure is expected to provide substantial support to the local economy”, the statement said.
Government’s expectation is that the removal of VAT from cement will be passed on to final consumers through appropriate adjustments in the final price charged, the statement said.