Retail transaction receipts will no longer require the affixing of tax stamps since proposed amendments detailed in the Tax Amendment Act were passed in the National Assembly on Tuesday.
The removal of this requirement was proposed earlier this year when the Chief Finance Minister in the Office of the President, Dr Ashni Singh, outlined several budgetary measures in the 2022 National Budget. Then Dr Singh said that the removal of this requirement would cost some $60 million.
See the full Ministry of Finance press release below:
Tax stamps to be affixed to retail transaction receipts will soon be a thing of the past as Finance Minister Dr Ashni Singh today successfully piloted the Tax Law Amendment Bill, Bill 9 of 2022 in Parliament during the 47and Sitting of the National Assembly at the Arthur Chung Conference Center. the amendment to the Law eliminates the requirement to collect stamp duty on receipts issued for retail transactions. The first reading of the bill took place on April 13 and the second reading and adoption by the National Assembly ended today.
This measure implemented is part of the wide range of relief measures implemented by the government since taking office on August 2, 20200 including the removal of Value Added Tax (VAT) on water, basic necessities, school and medical supplies. In addition, measures have been implemented to increase disposal revenue, including the distribution of $7.5 billion in COVID-19 cash grants, while $7.8 billion in flood relief has been implemented. also distributed to those most affected by the 2021 floods. Yesyesterday, four additional relief measures were announced by the President Irfaan Ali to know 1) a a cash grant of $25,000 to each household in riverside and hinterland communities place an additional $800 million in the hands of these households face difficulties 2) a 1 billion dollarsmillion purchase of fertilizer to be distributed free to farmers for use in planting and replanting activities to help cushion the rising cost of wateris a key input 3) House building facility which will see people building their house (whether privately or on government allocated land) be assisted throughout the process to secure loans from financial institutions, choosesing among the options of model homes and construction and delivery of model homes at a cost of $7 million, $9 million, or $12 million and 4) the removal of Value Added Tax (VAT) from gypsum board and concrete sign to help with the nation’s building and housing campaign.
In the meantime, Value Added Tax (VAT) – Amendment to Schedule 1 – Ordinance 2022-No. 9 of 2022 was also released to members of the National Assembly today and this allowed the abolition of VAT on cement announced by the Minister of Finance. the recent the abolition of VAT on this product has been also to alleviate the difficulties of owners and construction actors in accordance with government policy on housing and construction.
In addition, the Minister of Finance notified the National Assembly (by Government Notice No. 1 of 2022) of the receipts of all oil revenues paid into the National Resource Fund (FRN) for the period from January 1 to 31 March 2022. The communication of this information to the National Assembly complies with the requirements of the FRN Law 2021 which entered service on January 1, 2022.