The Minister of Finance and Treasury, Harry Kuma, confirmed the promised new tax measures when he tabled the $4 billion budget in Parliament yesterday.
Mr. Kuma said imposing the taxes was part of government’s move to control smoking, contribute to clean environment and combat Non-Communicable-Diseases.
He said medical evidence showed that increased tobacco consumption has direct adverse impacts on the health of our people, especially the young population.
“The government has completed review of Tobacco Excise regime and decided to raise the Tobacco Excise from 1st July, 2021.
“The government also intends to further strengthen the monitoring and tax compliance in this area, and will consider Introducing a system of tax in Lekona,” he said.
Minister Kuma said Government expects to earn $24.9 million in additional revenues from this measure.
Furthermore, Minister Kuma said as part of the DCGA’s policy on pollution and a clean environment, a $0.50 cents environmental levy was also proposed for plastics that are identified as major contributors to environment pollution.
He said single use and harmful plastics are going to attract this levy.
Mr. Kuma said the increase will generate minimal revenue of around $1.1 million for the full year.
“This will discourage the importation of plastics and encourage using of environmental friendly products other than plastics,” he said.
Furthermore, Mr.Kuma said through his Ministry and the Ministry of Health and Medical Services, the Government will impose a levy at the rate of $1.00 per Kg on raw sugar effective as of 1st May 2021 as part of the Government’s national strategy in combating non-communicable diseases in the country.
He said this Tax when fully implemented will generate additional revenue of $7 million per year to the Government.
Moreover, Minister Kuma said the other product category covered under the NCO policy strategy would include soft drinks at the proposed Levy rate of $1-00 per Kg.
He said this taxes, when implemented as planned, will generate additional revenue of $6 million per year to the Government.
Source. Island Sun newspaper
Yours sincerely
Frank Short
