New VAT-free basket of goods coming
A new basket of basic food items which will be exempted from the 17.5 per cent Value Added Tax will be introduced effective September 1, 2015.
Delivering the 2015/2016 budget, Finance Minister Chris Sinckler told Parliament that a large portion of the more than 409 items in the current basket of goods, were not of high nutritional value, could not be legitimately classified as basic and was out of the reach of vulnerable Barbadians.
“Therefore with effect from September 1st 2015 a new basket of basic food items…will be in force as the applicable basket to which full exemption from the standard VAT rate of 17.5 % will be applied.
“All other food items in the original VAT Basket will be subject to the standard rate of the VAT of 17.5 %.”
Sinckler said the change would result in Government earning an additional $20 million dollars revenue during the fiscal year.