The budget for the year 2018, presented in Parliament by the Hon. Minister of Finance and Media is based on the theme of “Blue-Green” Budget, will take effect from 1st of April 2018 onwards and major impacts proposed regarding VAT, NBT & ESC outlined below for better understanding on how it’ll affect your business.

VAT

  • Revenue generated from the sale of Solar Trackers classified under HS code 84.79.89.50 will be exempted.
  • Following revenue items generated from importing or supplying of imported such items have been made liable for VAT under the new budget.
    a. Plants & Flowers  b. Electronic Goods  
    c. Plastic Beads  d. Aeroplanes & Parts  
    e. Yarn /Fabrics  f. Spectacles 
    g. Wood & Articles  h. Cameras & Projectors 
    i. Dyes  j. Watches
    k. Glass Beads   l. Sale of condominium housing units 
    m. Plant and Machinery/ Industrial racks  

     

  • A VAT refund scheme for foreign passport holders Will be implemented at the airports and seaports with effect from May 01, 2018 for foreign passport holders.

NBT

  • New exemptions have been introduced as follows
    • Importation of non-motorized equipment and accessories for water sports.
    • Importation of non-powered equipment and accessories for aero sports.
    • Importation of gemstones for cutting and reexport purposes.
    • Importation of equipment that enables advanced technology agriculture practices.
    • Upfront payment of NBT and PAL applicable to the sale of yachts built by BOI companies to the local BOI charter companies.
    • Domestic coconut oil and kernel products (for 1 year).
    • Machines and equipment imported for the establishment of solar charging stations.
  • With effect from 01 April 2018, the sale of Liquor will be liable to NBT.

ESC

ESC base for imported motor vehicles will be amended as follows;

  • Motor vehicles liable for Excise duty - Excise Duty payable
  • Motor vehicles not liable for Excise duty – CIF Value

Currently the ESC base for imported motor vehicles is on CIF value

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