VAT measures
- Effective February 1, 2023, Government will increase the Value Added Tax (VAT) on carbonated beverages, soft drinks/sodas, and drinks with added sugar from 15% to 20%. We will also remove sugar from the VAT Zero-rated list with effect from the same date
- We will exempt VAT on the following food items and other necessities, effective February 2023 to be reviewed in December of 2023: Soya Chunks, Veggie Patties, Olive oil, Canola oil, Soya bean oil, Sunflower oil, Coconut oil, Red kidney beans, Black-eye peas, Lentil peas, Hand sanitizers, Adult diapers, Baby diapers, Toothpaste, Toilet Paper, Bathing and Laundry Soap, Sanitary Napkins, Condoms
- The full list of VAT exempt items is attached as an Appendix to the published version of this Statement. The exemption of VAT on these items is also aligned with Government’s policy to support healthy eating and lifestyles.
- We will grant 100% concessions on CET and VAT for selected production equipment to support the Creative Economy for 12 months (to be reviewed), starting February 1, 2023. Storage media, Production equipment for content creators, Audio-visual equipment, Art Supplies, All other ICT equipment and devices that are unequivocally needed for business use in the Creative Economy
- We will reduce the VAT rate on mobile and broadband data from 20% to 15%, starting February 1, 2023 (to be reviewed in December 2023) consistent with Government’s policy to build a digital economy. The estimated revenue foregone is $3.3 million.
- Effective February 1, 2023, we will reduce the VAT on electricity consumption from 15.0% to 7.5% for all consumers and reinstate the policy of zero-rating the VAT on electricity consumption up to 99 kWh for residential consumers. The estimated revenue foregone is $3.7 million
Source Grenadaembassy
