Ministry of Finance reveals list of VAT-free items

Effective October 17, over 16 items have seen a removal of Value Added Tax (VAT).

The list of items was revealed in a media release by the Finance Ministry.

The VAT removal on "basic" food items was announced by Finance Minister Davendranath Tancoo during the national budget presentation on October 13. Tancoo said this was a short-term solution to national food affordability.

The release said, in the case of local produce, food items are only zero-rated if they are unprocessed, "Thereby opening new gateways for our agricultural sector and local manufacturers to add value to these items without attracting VAT."

The items include:

· Table salt

· Sweetened or unsweetened cocoa powder

· Mauby

· Icing sugar

· Grapefruit juice

· Vanilla essence

· Soy sauce

· Prepared mustard

· Guava jams and jellies in retail packages

· Fruit and nuts, whether prepared or preserved

· Coconut water

· Condiments and seasonings (including pepper sauce, anchar and kuchela and similar preparations),

· Beverages containing cocoa

· Vegetarian meat substitutes in any form

· Cakes and muffins

· Locally produced pumpkin, watermelon, cucumber, lettuce and tomatoes.