Stamps no longer needed on receipts for retail transactions
Receipts of retail transactions will no longer require the attachment of revenue stamps since proposed amendments detailed in the Tax Amendment Act were passed in the National Assembly on Tuesday.
The removal of this requirement was proposed earlier this year when Senior Minister within the Office of the President with responsibility for Finance Dr. Ashni Singh outlined several budgetary measures in the 2022 National Budget. Then, Dr. Singh said that the removal of this requirement will cost some $60 million.
See below full press release from the Ministry of Finance:
Revenue stamps being required to be placed on retail transaction receipts will soon be a thing of the past as Senior Finance Minister Dr. Ashni Singh today 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 today.
This measure being implemented forms part of the wide range of relief measures Government has implemented since its assumption to office on August 2, 2020 including the removal of Value Added Tax (VAT) on water, household necessities, educational and medical supplies. Further, measures were implemented to increase disposal income including distribution of $7.5 billion worth of COVID-19 cash grants while $7.8 billion of flood relief was also distributed to persons most affected by the 2021 floods. Yesterday, four additional relief measures were announced 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 $1Billion purchase of fertilizer 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) Home-construction facility which will see 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 $7million, $9 million or $12million and 4) the removal of Value Added Tax (VAT) from sheetrock and concrete board to aid in the country’s housing and construction drive.
Meanwhile, the Value-Added Tax (VAT)- Amendment of Schedule 1- Order 2022-No. 9 of 2022 was also circulated to members of the National Assembly today and this allowed for the removal of VAT from cement which was announced by the Minister of Finance. The recent removal of VAT from this commodity was also 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.
Additionally, the Finance Minister notified the National Assembly (through Government Notice No. 1 of 2022 of the receipts of all petroleum revenues paid into the National Resource Fund (NRF) for the period January 1 to March 31, 2022. The provision of this information to the National Assembly is in keeping with the requirements of the NRF Act 2021 which came into operation on January 1, 2022.