No move on VAT

“NOTHING IS OFF THE TABLE.”
That was the response of Minister of Finance Chris Sinckler to a recommendation from the International Monetary Fund that Government keep the Value Added Tax (VAT) at 17.5 per cent.
He said no decision had yet been taken on whether the tax would remain at that level or revert to the 15 per cent that existed prior to December 1, 2010. It would all depend on whether the country’s deficit was sufficiently reduced by the time the increase expired, Sinckler told the DAILY NATION.
“It will be under review after a year and then we would look at it and see. At the end of 18 months the extra 2.5 per cent ends, so it automatically goes back to 15 per cent, but we would analyze it to see if, at that time, it should be extended or not,” he said. (DP)
 
Full story in today’s DAILY NATION.