While the time needed to completely clear the backlog of Value Added Tax (VAT) refunds would be difficult to estimate, Minister of Finance Colm Imbert says VAT bonds will be introduced to help reduce the outstanding amount.
Finance Minister Colm Imbert revealed that the bonds will be issued in tranches, starting next month.
The Minister was responding to a series of questions in the Senate on Tuesday related to the $7.8 billion VAT refund backlog.
Imbert said the VAT bonds will be issued between June and August 2023, and, as was done in the past, would be suitably priced to allow “full redemption at par in the commercial banks”.
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