While the increase in the Value Added Tax (VAT) threshold from $10M to $15M for companies was welcomed by the Private Sector Commission (PSC), the introduction of 14% VAT on water and electricity is seen as a burden.
During an interview with Chairman of the Trade and Investment Sub-Committee of the PSC, Ramesh Dookhoo, he noted that while it is unclear whether the proposed 14% VAT is recoverable or non-recoverable for businesses, the overall reduction in VAT of 2% when compared to introduction of these new measures only demonstrates the shifting of taxes around.
Dookhoo noted that “this is a burden” to citizens.
Finance Minister, Winston Jordan on Monday disclosed that the government is proposing a 14% VAT on electricity consumption in excess of $10,000 and a 14% VAT on water consumption exceeding $1,500.
The VAT threshold was increased from $10 million to $15 million.
Dookhoo welcomed other measures which will benefit public servants.
The PSC is expected to host a Press Conference on Thursday, December, 01.
