Amended VAT and NBT bills come into effect

Amended VAT and NBT bills come into effect

Amended VAT and NBT bills come into effect

Written by Staff Writer

01 Nov, 2016 | 11:06 am

The Ministry of Finance says that VAT Amendment Bill and the Amended NBT Bill, which were passed in Parliament, will come into effect from today, Tuesday, November 1.

A communique issued by the Ministry noted that Value Added Tax, or VAT, which stood at 11%, will be increased up to 15% from today. The increased VAT will affect a number of goods including liquor, cigarettes, telecommunication services, electronic goods, and milk powder.

In addition, VAT will also be imposed on health services, channeling services, doctors charges, specialist consultation charges and hospital room charges.

However, the sale of houses has been exempt from VAT.

Meanwhile, 82 goods including food items such as wheat flour, rice, sugar, bread, dhal, tinned fish, dried fish, Maldive fish, sprats, tea, as well as medicines, mobile phones, fertiliser, petrol, diesel and kerosene have been exempt from tax.

Meanwhile, the Ministry says that the 2% Nation Building Tax, or NBT, rate will not change.

The communique says that even though NBT will be charged on telecommunication services and electricity, this will not have an impact on electricity bills.

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