Wednesday, April 24, 2024

VAT rate hiccup

Date:

Share post:

Yet another revenue measure from the August 13 Budget has run into implementation problems.
Like the proposed consolidation and municipal taxes, new Value Added Tax (VAT) rates on hotel accommodation and Direct Tourism Services (DTS), which were scheduled to take effect from today, October 1, are still in abeyance.
In the 2013 Budget, Minister of Finance Chris Sinckler indicated that in its continuing efforts to reduce overhead costs and place the tourism sector on a more competitive footing, the new VAT rate on accommodation in the hotel sector would be 7.5 per cent from October 1, 2013.
“Additionally,” Sinckler said, “from that same date, Direct Tourism Services will be brought in line with their accommodation counterparts at 7.5 per cent, down from the current rate of 17.5 per cent. This should cost the Treasury approximately $9 million a year.”
However, with the effective date looming for the new DTS, businesses in the sector sought clarification from Government specifically on which services would be affected so that they could make the adjustments in their pricing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Broad Street to be paved over Heroes weekend

The Ministry of Transport and Works, through its contractor Infra Construction Inc., will mill and pave Lower Broad...

Death rates up

Barbados’ population is officially in decline as the number of people dying each year surpasses those being born. That...

CDB boss steps down with ‘immediate effect’

BRIDGETOWN – President of the Barbados-based Caribbean Development Bank (CDB), Dr Hyginus ‘Gene’ Leon, has resigned with “immediate...

St Michael man remanded on 14 charges

A 23-year-old St Michael man was remanded to Dodds Prison after appearing in court to answer 14 charges. Raheem...