It was yesterday that the historical third budget in 18 months was read by the Minister of Finance, Winston Jordan. What makes it historical is the fact that never before has a political party done what the coalition administration has; having produced a budget way before the economic year begins and this being its third since getting into government. The budget was read by the Honourable Minister of Finance, Winston Jordan beginning at 2:00 pm yesterday.
Here are some briefings of the budget proposals:
- VAT has been reduced by 2%, from 16% to 14%
- Water and Electricity will now be taxed at 14% (that is, they will attract VAT)
- There will be a 10% increase to the earnings of public servants who work for below $100,000
- Minimum basic salary is proposed to be raised to $55,000
- Salary threshold will be raised by 10% to $660,000 per annum
- Used tire restriction to be implemented from April
- $10 environmental tax to be implemented on every drink bottle imported
- Contractors to pay 2% Withholding Tax on every transaction
- Passport fee, travel tax and liquor licences among others hiked
- $43B allocated to education
- Large fines for tax evaders
- Excise stamp system for imported alcohol, cigarettes to be introduced
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