VAT an Act!

The government is expected to amend the Value Added Tax Act to legalize the introduction single tax rate despite opposition to the amendments on political platforms.

The combined rate for VAT has been effective since the beginning of the year but the amendments to the Act are yet to be approved by parliament.rn

rnExperts say its normal for budget proposals on changes to the tax structure to be implemented before the legislation is passed by parliament.rn

rnHowever the present government is in a tight corner after having criticized the previous UNF governments move of combining the tax rate.rn

rnThe Finance Minister has already indicated the government will stick to the budget without making any reference to legislating the combined VAT rate as 15 percent.rn

rnTax experts say the government has little choice but to present the amendments to the VAT Act as any move to reverse it could hurt revenue collection and complicate tax administration.rn

rnSources say top officials at the Treasur