Prime Minister Ralph Gonsalves has denied that his government will increase the rate of Value Added Tax (VAT) by 3 percentage points, carrying it to 18 per cent.
“I don’t know where this came from,” he told a press conference on Thursday, amidst widespread public discussion about the alleged planned tax increase.
“I never contemplated an increase in the rate of V.A.T. The rate of V.A.T. is 15 per cent, which was set originally, and the rate of tourism transactions for hotels is 10 per cent,” said Gonsalves, who is also Minister of Finance.
Gonsalves is expected to present the Estimates of Income and Expenditure for 2016 later this month, and the Budget sometime after.