Finance Minister Winston Jordan today announced that the Value Added Tax (VAT) will be dropped from 16% to 14% but it will also now be applied to electricity and water.
The cutting of the VAT is a fulfilment of a promise the APNU+AFC government had made in its 2015 manifesto.
There were however audible groans from the House when Jordan announced that VAT is now payable on electricity and water.
Jordan said that VAT will now be payable on consumption of electricity in excess of $10,000 per month and consumption of water in excess of $1,500 per month.
He also announced an increase in the VAT registration threshold from $10m to $15m.
He also revealed a modifying of the list of exempt and zero-rated items.