VAT waived on building materials and household furnishings in Grenada

The Government of Grenada has announced a 100% VAT waiver on building materials and household furnishings. The authorities have also recently announced the Phase II Incentive packages, which are designed to support the reconstruction of physical infrastructure and business re-activation in the aftermath of Hurricane Beryl.

These incentives are targeted at individuals, households and businesses directly affected by Hurricane Beryl. The authorities have announced a 100% VAT waiver on building materials such as cement, lumber, steel, windows, doors and galvanize sheets. They noted that this waiver applies to all material used for the reconstruction of homes and businesses that have been severely and directly impacted by Hurricane Beryl.

Along with that, they have also announced a 100% waiver on Common External Tariff (CET), VAT, and Customs Service Charge (CSC). It will also apply to all the building materials that will be used for the purpose of reconstruction of homes and business affected by Beryl.

The Ministry of Finance of Grenada has also applied a 100% VAT waiver on household furnishings such as fixtures, fittings, countertops, cabinets, furniture etc. Along with that, the waiver would also apply to large household appliances include refrigerator, stove, washer, television, freezer etc. This waiver would be limited to one of each appliance per household.

Moreover, the authorities have announced a 100% waiver on CET, VAT, Environmental Levy (EVL) and Customs Service Charge (CSC). They noted that it would also apply to household furnishings, large appliances, air conditioners and generators for personal use, with a limit of one of each appliance per household.

As per the packages, the VAT will be waived on locally purchased machinery and equipment as well. And, a 100% waiver also applies on CET, VAT, CSC, Excise Tax and EVL. The authorities stated that this waiver applies to machinery and equipment which has been imported to replace those damaged by Hurricane Beryl.

Notably, Hurricane Beryl caused widespread devastation in Grenada. Severely impacting the islands of Carriacou and Petite Martnique where 97% of buildings were damaged and destroyed. The aftermath of the hurricane also created crucial needs for electricity, emergency shelter, food, clean water, sanitation and health services.

The devastating impact of Hurricane Beryl has resulted in causing severe impact to the economic, tourism, business and several sectors of the nation. Therefore, the authorities have announced these fiscal packages with a vision to help stabilize and revive these sectors.

The Government of Grenada are also optimistic that these incentives will play a huge role in improving the productivity and would make the things affordable for the citizens to restore homes and properties.