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Thursday, 11 August 2016

Government compromises on VAT rate as House remains intransigent

Government compromises on VAT rate as House remains intransigent: The government has reportedly offered to reduce the baseline value-added tax rate (VAT) rate to 12% if the House of Representatives would reduce the number of goods and services on the exemptions, sources from Parliament tell Al Borsa. Another MP said that the House is likely to refuse the offer: “We will refuse to trim the exemption list and will insist on adding seven more goods and services,” the MP added. These apparently include ginned cotton, vegetable oil and recycled goods. Another source claims that MPs will not accept a baseline rate higher than 12%.

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