Excise tax bill now law
As the Excise Tax Bill 2007 was passed into law two Wednesdays ago, Prime Minister Dr Ralph Gonsalves said that the new excise taxes should not raise the prices of the products but rather keep them at their pre-Value Added Tax (VAT) price.
Dr Gonsalves said that alcohol, tobacco and car prices are expected to fall when the repealed consumption taxes are replaced by VAT.{{more}}
He explained that it was a worldwide custom to introduce excise taxes to deal with this sudden drop in price, and this was the pattern that St Vincent and the Grenadines was following.
He further stated that the new excise tax will, unlike VAT, be a one time âsingle stageâ tax on the manufacturer or importer of the selected products.
VAT is scheduled to be implemented from May 1st this year.
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