GOVERNMENT may not be able to collect the originally projected $62 million in VAT following the introduction from last Thursday, September 1, of the two per cent National Social Responsibility Levy (NSRL).
Minister of Finance Chris Sinckler in the 2016 Budget on August 16 had indicated that when applied, it was estimated that the levy alone would raise additional revenues of $60.8 million, while the additional revenue expected from VAT, which would be applied after the levy was imposed, would be $62.1 million.
However, in a Policy Note dated August 30, the Barbados Revenue Authority (BRA), which was responsible for collecting the impost, appeared to contradict the minister, pointing out that while the levy would be placed on the selling price of local/domestic outputs, the VAT would be calculated exclusive of the levy. (AB)
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