Tag: import duties

GST rises to six percent as revised import duties come into force

The General Goods and Services Tax (G-GST) passed by parliament last year rose to six percent from 3.5 percent yesterday while import duties were lowered or eliminated for a range of commodities starting on January 1, 2012.

The Tourism Goods and Services Tax (T-GST) was meanwhile raised to six percent for 2012 as stipulated in the GST Act.

Under the tax legislation approved last year, items with GST rate set at zero percent for which import duties have now been eliminated include rice, flour, sugar, salt, milk, cooking oil, eggs, tea, fish products, onions, potatoes, fruits and vegetables, baby food, diapers, gas, diesel and petrol.

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“2012 is going to be a duty free year”: President

President Mohamed Nasheed ratified amendments to the Export-Import Act of 1979 on Thursday, enacting a key piece of legislation in the government’s economic reform package intended to reduce and eliminate import duties for a wide range of goods from January 2012.

Under the amended Act, zero rate now applies to construction material, foodstuffs and machinery run of renewable energy.

In his weekly radio address on Friday, Nasheed said the budget submitted to parliament “will make 2012 a duty free year.”

As a result of the shift from indirect to direct taxes, Nasheed noted, government revenue from custom duties levied upon imported goods will drop by Rf700 million next year.

Economic forecasts predict that prices for some items would fall by 9 or 13 percent, he added.

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