Posted by By Deanzer Roberts
St. Georges, Grenada – The Ministry of Finance is continuing with the necessary work towards the implementation of the Valued Added Tax (VAT) in 2010.
The Education programme is ongoing with consultations being held in parishes, as the ministry seeks to prepare persons for the February 1st implementation.
Addressing the issue recently Minister of Finance Hon Nazim Burke noted that the success of the implementation of the VAT will depend on the extent to which the population is prepared.
To heighten awareness the Ministry has began Media Blitz, Consultations and Business Advisory – where they take the issues to the individual businesses.
The Government he says has taken the decision that at the first opportunity the law will be amended so that there will be no VAT on domestic water supply.
In respect of Medicines for some basic chronic diseases Minister Burke says that with the help of the Ministry of Health and the Medical Association a list of medicines will be developed for which will be exempted from VAT.
he says that it is imperative for businesses to be prepared for the implementation, in that respect government he indicated ahs decided to grant a 50 per cent rebate to all businesses purchasing new point of sales equipment for the purpose of the implementation of the VAT.
This he says is a way of providing a further and additional incentive for businesses as they strive to struggle with the administrative challenges associated with the Tax.
With effect from the month of November The Minister says that a system of traditional bonding warehousing is expected to be implemented so as to assist business persons in bringing in their goods, have them place in a bonded warehouse, on their own premises provided that customs officials has supervisory authority over the access to those bonded warehouses.
In that way he says businesses and persons will be able to import their goods and not be required to pay any taxes on it until the goods are removed from the bonded measure.
This is a measure he says will prevent persons from paying GCT on goods and on February 1st VAT is placed on the same goods causing a spike in the prices that customers will have to pay.
