Making the improvements to the VAT Act and Excise Act the government of Dominica announced to spare the import duties and excise tax on motor vehicles imported by individuals or businesses, whose prime pursuit is the transport of visitors.
The Dominica Cabinet meeting approved these exemptions on Tuesday, December 8, 2020.
In a statement after Cabinet Meeting, Minister of Environment, Rural Modernisation and Kalinago Upliftment, Cozier Frederick announced that in forthcoming Parliament sitting on December 16, 2020, the government would provide a green flag to exemption on import duties and excise tax on transports.
Making another declaration concerning the packaging and labelling supplies, Minister stated that Cabinet has granted to remove VAT and import duty on these supplies.
He noted that these exemptions would also be appropriate on “the equipment and machinery employed in the production of goods, to improve the competitiveness of regionally manufactured goods.”
He further continued, “Parliament meets on December 16, 2020, and Government will attempt Parliament’s consent of the alterations to the Excise Tax Act, and the Value Added Tax Act to promote the constant implementation of these bills.”
Minister Cozier Fredrick stated that the cabinet has agreed on the removal of VAT on the import of pleasure crafts and tour boats, containing at least 45 cubic metres, along with their engines,” he added.
Minister said that all these proposals are suspected to immediately assist two productive divisions of Dominica, including Tourism and Manufacturing.
Frederick noted that these measures were chosen following discussions with the stakeholders of the concerned sectors.
“As a Government, we are happy that we can bring some comfort to assist the micro and small businesses particularly.”
People of Dominica have been expecting for tax cuts and the measures. The new amendments introduced by the government will unquestionably assist the citizens earning from tourism and transport sector.
As per Cozier Fredrick, these changes are made under the “Dynamic Dominica” project announced by the Prime Minister Dr Roosevelt Skerrit.