The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

ECONOMIC Affairs Minister Michael Halkitis says the reduction in value added tax to ten percent has been implemented smoothly across the country.

The rate change took effect on January 1.

“It’s gone very smoothly, we haven’t had many hiccups, or any hiccups that I have heard about, but if we have any I would deal with them, but it’s gone very smoothly,” he told reporters before a Cabinet meeting yesterday.

“About a week ago we had a virtual seminar with some business people who had expressed some concerns and they had their questions answered, (it was) very well attended and since then I believe everything has gone smoothly. I believe people have already begun to experience some savings, but as the days and weeks go on we will have more and more people experience the savings.”

The Davis administration announced last year that it would put VAT at ten percent on almost all items and services, including previously zero-rated breadbasket items.

The previous VAT rate was 12 percent.

“Anyone who is being charged 12 percent should contact us at the Ministry of Finance, Ministry of Economic Affairs or Department of Inland Revenue…everybody should be charged 10 percent,” Mr Halkitis said.

“For businesses who have actual physical price tags on items, for example a clothing store where they have a tag on an item and some retailers where they have a physical price on an item, we’re giving them a transition period for them to physically change the prices on those items,” he added.

“People are seeing the savings. I had the opportunity to speak to an entrepreneur yesterday who had received his rent for his business and it was reflective of the change to ten percent and he was very, very happy with the savings and I think as time goes on people will realise that to go from 12 percent to ten percent on the tens of thousands of items and services that people purchase it will be a saving when compared to the few items than the zero (rate) has been changed on.”