- Finance Minister Colm Imbert is considering waiving Value Added Tax (VAT) for the energy industry in Trinidad and Tobago.
- This is to help the government pay VAT returns to small and medium enterprises (SMEs).
- The majority of VAT returns owed are to the energy sector, which is zero-rated.
- Imbert believes exempting the sector from paying VAT could eliminate the problem.
- He is also considering transitioning from VAT to a sales tax, but acknowledges the challenges involved.
- Compliance with a sales tax may present similar or more problems than the current VAT regime.
- The collection method for VAT is different from a sales tax, with VAT being added at each stage of the process.
- Imbert is carefully examining the potential revenue and implications of implementing a sales tax.
Source: newsday.co.tt
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
