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Finance Minister to Open Debate on Finance Bill 2016 today

Finance Minister to Open Debate on Finance Bill 2016 today

Colm Imbert 3

Finance Minister, Colm Imbert

This country’s Finance Minister, Colm Imbert will open debate on the Finance Bill 2016 in the House of Representatives today. The bill is expected to be debated in the senate on Friday. Included in the bill will be proposed amendments to Schedule II of the VAT Act 75:06.

The Finance ministry has indicated that the reduction in the rate of VAT from 15 to 12.5 percent and the changes to the range of items, subject of VAT will become effective on February 1, 2016.

In a previous statement on December 30, the ministry indicated the reason for the VAT changes taking place from February 1 was to give VAT registered companies, three weeks to make the necessary adjustments to the cost of their goods and services and to adjust their billing cycles .

The Ministry had also stated that the other taxation measures, namely the increase in the Personal Allowance to $72,000, the increases in the Green Fund Levy and Business Levy and the implementation of the Property Tax will be made effective from the beginning of 2016.

The ministry explained that although the Finance Bill and the amendments to the Property Tax Act will be introduced in Parliament in January, “these latter taxes and measures, would have become effective from the beginning of 2016 because they were due and payable, and/ or effective, on a quarterly or annual basis, as opposed to VAT, which is due and payable on a bi-monthly basis.