VAT draft bill and regulations made public

Sat, Nov 30th 2013, 11:47 AM

The Ministry of Finance officially released the draft value-added tax (VAT) bill and regulations yesterday.
A copy of both as well as a guide to the bill and regulations were posted on the ministry's website.
"The drafts of the value-added tax bill and regulations are being released to expand the public discussion and consultation process on the fiscal reform initiative," the ministry said on its website.
"The draft VAT bill would be tabled in Parliament after the conclusion of the public consultation process.
"Based on the results of the public discussions and consultations, appropriate amendments to the draft bill would be made."
The Guardian reported on the draft bill and regulations last month. Much of what was contained in the leaked copy remains, save for a few small changes.
Religious services by an institution of religious worship; games of chance, gambling and lotteries within the meaning of the Lotteries and Gaming Act and education services remain as some of the exempt supplies of services.
Chicken, pork, sheep, goat and horse meat, sausages and sandwich meat, among others would remain VAT exempt.
The 10-15 percent tax rate at which VAT is proposed to be implemented remains.
Prime Minister Perry Christie said earlier this week that government may consider a recommendation from financial advisor James Smith not to have VAT implemented at a rate higher than 10 percent.
The threshold for VAT registrants is $100,000 and hotels have a tax discount of 10 percent on all accommodations, services and food and beverage sales.
The government has said VAT is necessary to bring down the government's massive deficit and get the country's spiraling debt situation under control.
Ministry of Finance officials estimate that VAT can generate about $200 million in annual revenue.
The ministry's website also has a timer, counting down to the VAT implementation date, stating that it is 212 days away.

Click here to read more at The Nassau Guardian

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