The opposition yesterday criticised government for stealthily revoking a waiver of the Value Added Tax (VAT) on heavy-duty capital equipment, which the Rice Producers’ Association (RPA) called the “death knell” of the local industry.
Order 6 of 2016, signed by Finance Minister Winston Jordan on January 29th and published in the Official Gazette on February 10th, states that paragraph 2 (aa) of Schedule 1 of the Value Added Tax Act is revoked. According to PPP/C MP Anil Nandlall, the section had provided for the zero rating of heavy-duty equipment destined for the agricultural sector.
Section 2 (aa) provided for a zero rating of “the first import, after the coming into operation of the VAT Act, of one of each large capital item of equipment such as a bulldozer, excavator, tractor, or similar heavy duty industrial machine by a person who invests in these items, provided that on the day prior to the coming into operation of the VAT Act the import of the item by the person was subject to Consump-tion Tax at a rate of
