The main Opposition, Peoples Progressive Party (PPP) today accused the coalition Government of new assault on the Economy specifically the productive sectors.
PPP Executive Anil Nandlall says the revocation of concessions that were previously attached to heavy duty vehicles is a point of deep concern for the Office of the Leader of the Opposition.
Amendments to the Value Added Tax Act specifically Order No. 6 of 2016 will see the revocation on the zero rating attached to “large capital item[s] of equipment such as a bulldozer, excavator, tractor, or similar heavy duty industrial machine.”
This move, the PPP says although now appearing in the Official Gazette on February 10 last did not feature during the presentation of Budget 2016, the debates nor the consideration of the Estimates. According to Nandlall, “it was done without any consultation whatsoever, …any public statement, …any prior notice or notice at all to any of the sectors that would be affected by this measure”.
The government’s actions Nandlall posits conveys the impression that they were not desirous of revealing the true nature, purport and effect of the Order as it was almost surreptitiously inserted on a list of exemptions from VAT.
The party is now calling on Government to reverse this measure as many productive sectors depend on these types of vehicles for production and this could, in the party’s opinion lead to a decline in production and resultant economic stagnation.