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Changes to ‘basket of goods’

SHERRYLYN TOPPIN, [email protected]

Changes to ‘basket of goods’

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THE BASKET OF GOODS which was exempt from the Value Added Tax (VAT) has been amended.

According to Minister of Finance Chris Sinckler, a review undertaken by the Inter-Ministerial Committee showed that several of the 409 items in the list were not meeting the intended purpose.

During the presentation of the 2015 Financial Statement and Budgetary Proposals on Monday, Sinckler said this basket of good was intended to give “relief particularly to the poor who were likely to be more negatively impacted upon by the accepted regressive nature of the VAT”.

This included foods which were of “high nutritional value” so they were “always kept within the price range of the average shopper”.

Items in the VAT Free Basket

Items taken out of the VAT Free Basket

Upon the recommendation of the Inter-Ministerial Committee, the items in this basket have now been amended and will come into effect from September 1. This is expected to earn some $20 million in a full financial year. (SAT)