SENIOR Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, has announced that the Value Added Tax (VAT) has been removed from cement with effect from April 29, 2022.

A release from the Ministry of Finance noted that government had previously announced in Budget 2020, the removal of VAT on building and construction materials, on which VAT was imposed after 2014. At the time that this measure was implemented, cement was not impacted because cement had previously attracted VAT prior to 2015.

The government’s removal of VAT on cement reflects recognition of the importance of cement as a key input for the construction of residential dwellings as well as commercial buildings, and is in line with government’s vision for providing relief to citizens as well as to support the housing drive. This measure is expected to provide substantial support to the local economy.

Government had previously also removed VAT from water, electricity, basic food items and household necessities.
“Government’s expectation is that the removal of VAT from cement will be passed on to final consumers through appropriate adjustments in the final price charged,” the release said.