0°C
The national budget for fiscal 2021 presented in the Parliament on October 5, 2020 proposed a range of incentives expected to ease the burden on members of all sectors of society.
Many of these fiscal measures and policy initiatives take effect this month.
Eleven of these budget measures take effect today:
1. The personal income tax exemption limit will be increased from $72,000 to $84,000. This means that people earning a monthly salary of $7,000 or less, will be exempt from paying income tax. This measure will cost the government $750 million per year.
2. The full VAT of 12.5 per cent will now be applied to a wide range of imported luxury food items, including apples and grapes.
3. The stamp duty threshold for residential properties for first-time homeowners will be increased from $1.5 million to $2 million.
4. The allowable rate of Wear and Tear for Plant and Equipment will be increased from 25 to 30 per cent.
5. All penalties, fines and custodial sentences for illegal quarrying on private lands as provided for in the Minerals Act will be increased by 200 per cent. The penalties, fines and custodial sentences for illegal quarrying of asphalt or other materials on state lands as provided for under the State Lands Act will also be increased by 200 per cent.
6. Fines and custodial sentences for praedial larceny will be increased by 200 per cent.
7. The threshold for the imposition of the Supplementary Petroleum Tax (SPT) for small onshore oil producers will be increased to $75 per barrel, from $50 per barrel, for fiscal 2021 and fiscal 2022, in the first instance.
8. All penalties for selling alcohol and tobacco to minors as well as all other penalties under the Liquor Licences Act, and the Tobacco Control Act will be increased by 200 per cent.
9. The removal of VAT on the importation of building materials for approved housing, commercial and industrial development projects, which start on or before December 31, 2022.
10. Section 2 of the Corporation Tax Act 75:02 will be amended to promote access by small and medium enterprises to equity funding via the Stock Exchange.
11. The tax allowance for corporate sponsorship of nationals in the local fashion industry, audio, visual or video productions field, under specific conditions, will be increased from $6 million to $12 million.
Also taking effect this month:
1. A tax allowance set at 150 per cent up to $3 million will be provided to businesses that invest in tech start-ups and new tech businesses
2. A tax allowance set at 150 per cent up to $3 million will be provided to businesses that engage in technology solutions and digitalisation.
3. A tax allowance set at 150 per cent up to $3 million will be provided to businesses that create employment in the technology industry, particularly for young people.
4. The subsidy on all liquid fuels (diesel, kerosene etc.) will be removed and the fuel retailers will be allowed to set their own margins. While at the current low oil prices, there will be little or no price increase, if the price of oil recovers, the price of gasoline and diesel will increase proportionately. Liquid petroleum gas (LPG) will remain under the subsidy mechanism.
5. The permissible age of imported foreign used cars will be reduced to three years and the quotas for the importation of used cars reduced by 30 per cent. A quota system will also be introduced for the importation of new cars.
6. From January to September 2021, the Youth Training and Employment Partnership Programme (YTEPP) Limited will administer a programme through which young people will have access to over 4,000 courses on Coursera.
Facebook
Twitter
Instagram