The PPP/C Government presented the $383.1 billion 2021 Budget, themed “A Path to Recovery, Economic Dynamism and Resilience”, without the introduction of any new taxes.
On the contrary, the sweeping relief measures announced by the Finance Minister, Dr Ashni Singh, on Friday saw the removal of value-added tax (VAT) from a slew of food items and household necessities to alleviate the burden on taxpayers.
According to Dr Singh, Government will restore the zero-rated status all of the food items and other basic household necessities that were previously zero-rated in 2015 before the last PPP/C regime demitted office.
These items include basic wheaten flour, basic breads, oats, unflavoured cracker biscuits, cooking oil, locally produced bed sheets and pillowcases, toothbrushes, etc. This, the minister noted, is in fulfilment of another one of the PPP/C’s manifesto promises.
Meanwhile, other sweeping relief measures introduced in the 2021 budget includes the removal of duties on ATVs (All-Terrain Vehicles) for use in the hinterland. Dr Singh posited that this will reduce the cost of transportation to hinterland communities for operators.
The Finance Minister noted that the measures introduced in the 2021 budget will add a further $10 billion to last year’s $40 billion annualised cost.
