“Greater good” behind VAT zero-rating – Serame

Peggy Serame PIC: PHATSIMO KAPENG
Peggy Serame PIC: PHATSIMO KAPENG

Government’s move to cut Value Added Tax (VAT) from goods such as salt, sanitary pads, infant formula and diapers, will cost about P50 million each year in lost revenue, Finance Minister, Peggy Serame says.

Besides these products, the ministry plans to zero-rate VAT on cooking oil, Liquefied Petroleum Gas, white bread as well as ginger and leguminous vegetables. Under amendments to the VAT Act due in Parliament soon, a range of agricultural inputs that were previously VAT exempt will be moved to zero rating, as will condoms.

Private health services will also become VAT exempt.

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