New tax regime takes effect today

The tax year begins today and for planning purposes, any changes to tax law are required to begin today. Having failed to present the reforms to the last sitting of the House, the government is expected to approach legislators in the winter session that begins on July 5 (Monday).The reforms - the result of an 18-month-long consultative process between Government and the private sector - have stalled over the latter's fear that millions of pula in tax credits could disappear into the system when the new regime kicks in.

High level and drawn out discussions between finance ministry, BURS and BOCCIM have revolved around the status quo of tax credits earned by the private sector and what will happen to these when the two tier system is abolished.