Trinidad and Tobago’s Prime Minister Kamla Persad-Bissessar has announced that Value Added Tax (VAT) on all food items will be removed, effective November 15, as part of measures tabled in tomorrow’s 2012/2013 Budget presentation.
Addressing a massive crowd of supporters during the People’s Partnership’s “Pre-budget Rally” yesterday she announced her Government’s initiatives to reduce food prices.
“From November 15, 2012, VAT on all food prices will be removed,” Persad-Bissessar said, before repeating, “VAT on all food items will be removed.”
Adding the initiative had been contained in a contribution she had made in 2008 while on the Opposition benches during debate on the high cost of food, she said, “Check the Hansard, you will see.”
She noted that currently, some 59 food items were “zero rated” while on all others the 15 percent VAT was applied.
However, she was quick to add the measure would not be applied to alcoholic beverages and luxury items such as caviar and champagne.
“No luxury items will be zero rated, such as caviar, champagne, and no alcoholic beverages,” she reiterated to the crowd.
The Prime Minister said among the items which would witness a reduction would be pig tail and all types of beans, including canned pigeon peas, baked beans and red beans.
She also announced that a committee comprising various government ministries, including the Finance, Food Production and Trade and Industry Ministries, together with the TT Manufacturers’ Association (TTMA) and the Supermarkets Association, will also look at review of those food items which attracted import duties, with a goal of reducing such food items.
She said, however, that this would be done on a phased basis so as not to harm the local food production industry.
Newsday
