Govt imposes 15% VAT on meat, cereals

THE government has imposed a 15% value-added tax (VAT) on all meat products and cereals, in a move likely to trigger a sharp increase in the prices of most basic foodstuffs, as retailers are likely to pass on the cost to end users.

The new tax regime, which becomes effective today, was introduced by Finance minister Patrick Chinamasa under Statutory Instrument (SI) 20 of 2017 and affects all meat products — including offals and fish — rice, maheu and margarine.

Previously, products such as rice, fish and meat were exempt from the 15% VAT, which has largely made the prices of these basic commodities relatively cheap and affordable for low-income earners.

This story is for NewsDay subscribers.