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Will VAT make my life more difficult?

Will VAT make my life more difficult?

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Will the implementation of the Value Added Tax (VAT) make my life more difficult or will it be something that is beneficial to me?

These are the questions that were asked by most people in St Vincent and the Grenadines as they viewed the exhibition put on by the VAT Unit this month.

Speaking to the SEARCHLIGHT, assistant manager of the Inland Revenue Department Harold Lewis stated that most Vincentians do not understand what VAT is all about and they are therefore misguided as to what to expect when the system comes into play on May 1 2007.{{more}}

Lewis stated that there are some instances where the VAT is actually cheaper than the present consumption tax rate.

According to him, the public does not know how much tax they are presently paying on any item; but under VAT it will be detailed on their bills.

Though the VAT system may increase the price of some goods, this is not the case for all items. Some goods are exempted and others are zero-rated; which according to Lewis caters to poorer people.

During the past week, the members of the VAT unit held an exhibition to educate the public on some of the items that will be both taxable and non taxable when the VAT comes into being on May 1 2007.

Persons who are interested in gathering more information on the VAT system can consult with members of the VAT team which is located upstairs what used to be the AT&T wireless building.

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