The Ministry of Finance has released a comprehensive list of food items that will be free from value-added tax (VAT) come November 1.
A release from the ministry yesterday detailed the listing, as it sought to address criticism in the public domain towards Minister of Finance Colm Imbert following Monday’s Budget presentation.
It noted that the list given in Parliament was not an exhaustive list but “was simply designed to illustrate some of the most commonly purchased items in supermarkets by most households, where the Government can influence the prices of these items downwards by making them free of VAT.”
On the issue of curry, the ministry said its inclusion was an error.
“That was indeed an error on the list of items recommended for removal of VAT that was sent by the Supermarket Association to the Minister on Sunday, October 3 and not picked up by the technocrats in the Ministry,” the release said.
However, the Minister thanked the association for its assistance and did not place any blame on it for the error.
It also noted that not all canned meats are free of VAT.
“For example, canned sausages are NOT VAT free at present, nor are any other canned meats, other than corned beef. Similarly, while sardines and smoked herring are free of VAT, Tuna and Mackerel are NOT VAT free at present, as is also the case with other canned fish. Further, no canned vegetables are currently free of VAT, such as corn, peas and mixed vegetables,” it said.
The release noted that the list was very carefully chosen in collaboration with various stakeholders “to represent the most commonly used foods that are currently subject to VAT.”
“The zero-rated list will be amended from time to time, to add more basic items as circumstances require and deserve, and as funds permit,” the ministry said.
Vat free food items from November 1:
• Vegetable/Soya Bean Oil
• Olive Oil
• Coconut Oil
• Canola Oil
• Ghee
• Peanut Butter
• Black Pepper And Other Spices
• Family Cereal
• Kid’s Cereals
• Hot Cereal Oats
• Milk Substitute
• Condensed Milk
• Instant Coffee
• Ground Coffee
• Steel Cut Oats
• Black Tea (3kg And Under)
• Green Tea (3kg And Under)
• Orange Juice
• Apple Juice
• Still Water (Bottled Water)
• Seasoned Meat
• ↓Sausages, Canned Or Otherwise Packaged
• Canned Tuna
• Canned Mackerel
• Canned Peas
• Canned Beans
• Canned Corn
• Canned Mixed Vegetables
• Mayonnaise
• Ketchup
• Roti Skin
• Soup (Packaged)
• Geera (Crushed Or Ground)
• Soya Chunks
• Soya Minced
• Ground Dhal
• Cheese Slices
• Table Butter
• Pigtail
• Ham Slices
• Turkey Slices
• Chicken Lunchmeats
• Bologna
• Fresh Juice
• Biscuits And Crackers