VAT reduced to 14%; Implemented on water and electricity consumption
The government on Monday announced a decrease in Value Added Tax (VAT) from 16% to 14%. This is included in Budget 2017 which was presented by Minister of Finance, Winston Jordan.
However, in the same breath, the Minister announced that the VAT will be implemented on water and electricity consumption.
A 14% VAT will be implemented on electricity consumption which is in excess of $10,000, while a 14% VAT will be implemented on water consumption in excess of $1,500.
Additionally, the VAT threshold will be increased from $10M to $15M.
There has also been an increase in the number of zero-rated items