Additional incentives have been given to citizens and companies with the passage of the Value Added Tax Amendment Bill in Parliament on October 28th.
The Bill tabled by Prime Minister Dr. Ralph Gonsalves seeks to amend the third and fourth schedules of the principal Act.
Changes to the third schedule addresses zero rated supplies. The bill also seeks to remove the VAT payable on water supplied by a private entity to residential premises for domestic use, bringing these entities on equal footing with the CWSA.
It would make it more economically advantageous for domestic consumers to purchase water from private suppliers.
Gonsalves in tabling the bill said 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.