- An increase in the period in which a business can claim a refund on VAT incurred on eligible goods before the commencement of commercial operations to 7 years from the current 4 years for hydroelectricity generation;
- The removal of customs duty on machinery, equipment, and other goods designed for geothermal energy activities;
- The expansion of the list of selected media, film, and music equipment for which customs duty was suspended as part of the 2023 Budget, which will apply for a period of 3 years;
- The following measures to promote local investment in the manufacturing sector:
- the removal of customs duty on the importation of motorcycles and tricycles imported in complete knock-down form for companies that assemble and source at least 5% of inputs locally; and
- an increase in the customs duty rate from 15% to 25% on solar (electrical) panels;
- The removal of customs duty on the importation of rolling stock, namely, wagons and locomotives to improve railway operations;
- The following measures to continue promoting the usage of clean energy as well as supporting the green economy and climate change mitigation:
- the removal of customs duty on electric motorcycles, electric vehicles, electric buses, electric trucks, and attendant accessories such as charging systems; and
- a reduction in excise duty from 30% to 25% on hybrid vehicles designed for the transportation of persons;
- The removal of customs duty on machinery, equipment, and other goods designed for petroleum exploration;
- The introduction of measures for the implementation of a new electronic invoicing system;
- The introduction of new rules for the deduction of input VAT, requiring suppliers to be in possession of specified documentation to claim an input VAT deduction:
- a tax invoice issued from a serially numbered invoice book;
- a tax invoice issued from a computer package authorized by the Commissioner-General for the purpose of invoicing taxable supplies;
- an invoice issued from the approved invoicing system;
- an invoice with contents in accordance with the administrative rule made by the Commissioner-General; or
- in the case of imported goods, import bills of entry and documentary evidence of the payment of tax that the Commissioner-General may, by administrative rule, determine;
Source Orbitax
