The Grenada authorities has introduced a one-month delay within the implementation of a rise within the Excise Tax on alcohol and tobacco merchandise in addition to Worth Added Tax (VAT) on sugar, sugary or carbonated drinks.
“In relation to the tax on the sugary drinks we’re going to push again the date for this to grow to be efficient from the primary of March slightly than the primary of February as a result of we’d like the extra time to ensure that the objects are clearly recognized, clearly categorised and clearly revealed and that there isn’t a ambiguity,” Prime Minister Dickon Mitchell advised a information convention.
Mitchell, who can also be the Minister for Finance, had in his finances assertion final December introduced that as of February 1, this yr, alcohol and tobacco product will see a rise within the excise tax whereas refined sugar will likely be faraway from the zero charges VAT checklist and the VAT on sugary merchandise will improve to twenty per cent.
However on the first post-cabinet information convention for the yr, Mitchell advised reporters that his administration needed to have extra discussions with the assorted stakeholders who will likely be instantly affected by the taxes.
“We felt we wanted that further time to take action and to speak with the stakeholders who will likely be impacted by this measure,” he mentioned, as he supplied extra justification for the delay of the Excise Tax.
Prime Minister Mitchell, who offered a decision for the rise to the Parliament final Friday, mentioned that the delay for enforcement is to determine the checklist of merchandise that will likely be affected.
“Because it pertains to the Excise Tax on alcohol and cigarettes we’re additionally going to push the date again to the primary of March, in order that we will clearly determine all the alcoholic objects, the truth that the Excise Act was handed a very long time in the past and what you referred to as tobacco when it was handed is just not essentially what chances are you’ll name tobacco as we speak,” he mentioned.
“There are new merchandise, for instance, e-cigarettes and so forth which at the moment are available on the market, and we have to ensure that we deal with these nuisances as a part of the method, so we’d like the extra time to deal with it and so we are going to push the date again to March 1,” he added.
Final December, the federal government introduced that the tax measures, Mitchell mentioned the Excise Tax improve is aimed toward recouping income given up via its cost-of-living aid measures. Mitchell mentioned then that authorities would have misplaced as a lot as EC$30 million (One EC greenback=US$0.37 cents).
“Given the numerous potential lack of income by the fiscal measures carried out by this Authorities that is simply one of many many counteracting measures that the federal government has taken from our fiscal coverage to deal with this,” Prime Minister Mitchell advised Parliament.