The Ministry of Finance yesterday announced the passage of a bill for the abolition of the Stamp Duty on retail transactions.
A Ministry of Finance release yesterday informed that Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, had yesterday successfully piloted the Tax Amendment Act, Bill Number 9 of 2022 in Parliament during the 47th sitting of the National Assembly at the Arthur Chung Conference Centre. The amendment to the Act removes the requirement to charge stamp duties on receipts issued for retail transactions. The first reading of the Bill took place on April 13 and the second reading and passage by the National Assembly concluded yesterday.
According to the release, this move is one of a suite of relief measures implemented by the government since its accession to office in August 2020. These included the removal of Value Added Tax (VAT) on water, household necessities, educational and medical supplies, the distribution of $7.5 billion worth of COVID-19 cash grants and $7.8 billion of flood relief distributed to persons most affected by the 2021 floods.
In addition to these measures, four additional relief measures were announced on Monday by President Irfaan Ali namely 1) a one-off $25,000 cash grant to every household in riverain and hinterland communities placing an additional $800 million in the hands of these households facing hardship; 2) a $1 billion purchase of fertiliser to be distributed free of cost to farmers to be used in planting and replanting activities in order to help cushion the rising cost of this key input; 3) a home-construction facility which will enable persons building their homes (whether privately or on Government allocated land) being assisted through the process to secure loans from financial institutions, choosing from options of model homes and construction and delivery of model homes at a cost of $7 million, $9 million or $12 million; and 4) the removal of VAT from gypsum board and concrete board to aid in the country’s housing and construction drive.
The release also stated that the Value-Added Tax (VAT)-Amendment of Schedule 1- Order 2022-No. 9 of 2022 was also circulated to members of the National Assembly yesterday and it allows for the removal of VAT from cement which was announced by the Minister of Finance. The recent removal of VAT from this commodity was intended to allow for an “ease in hardship” to home owners and those in the construction industry in line with government’s housing and construction policy.
