Additional incentives are being given to Vincentians with the passage of the Value Added Tax (VAT) Amendment Bill in Parliament on 28th October.
The Bill was tabled by Prime Minister, Hon. Dr. Ralph Gonsalves, who said that it seeks to amend the third and fourth schedules of the principal Act.
Prime Minister Gonsalves stated that the third schedule addresses zero-rated supplies. He said that the bill seeks to remove the VAT payable on water supplied by a private entity to residential premises for domestic use, so this would bring these entities on equal footing with the CWSA. It would make it more economically advantageous for domestic consumers to purchase water from private suppliers.
The Prime Minister also said that the fourth schedule deals with the exemption of the tax for repair work on aircraft and ships engaged in local transport. Under the present arrangement the exemption is only for international transport, but this amendment seeks to extend this exemption to aircraft and ships engaged local trade. Thus, to reduce the incentive for local ships to seek services in neighboring islands.
