- VAT Refunds Timeline Reduction: The Finance Bill proposes reducing the timeline for lodging VAT refunds from 24 months to 12 months, and amending the threshold for VAT refund claims on bad debts from 3 years to 2 years from the date of supply.
- Taxation of Previously Exempt Products: Certain products, including aircraft instruments, locally assembled vehicles for tourism, and inputs for passenger vehicle manufacturing, will now be taxable at a 16% VAT rate.
- Zero Rating to Exempt Schedule Changes: The Bill proposes moving items such as locally assembled mobile phones, electric bicycles, animal feed inputs, and solar batteries from zero-rated to exempt status, impacting their VAT treatment.
Source PwC
