The tax amendment bill to increase the VAT from 15% to 18% was passed with amendments in Parliament today (24).
Accordingly, the Value Added Tax on Financial Services will be increased from 15% to 18% with effect from 01 January 2022.
In addition, the amendment provides for exemption from VAT only on donations of medical equipment, machinery and medicines made to government hospitals and the Ministry of Health in the event of an epidemic or public emergency.
The members of the Committee on Public Finance were of the view that if there was any reduction or increase in the tax collection process of the country, a proper economic analysis should be made.
