- New Transaction Tax introduced in June 2025 by Chief Minister during Budget 2025 presentation
- Standard rate set at 15 percent initially
- Planned increases of 1 percent in the second and third years, reaching 17 percent
- Includes reduced and zero-rated categories similar to European VAT model
- Reduced rate of 5 percent applies to children’s clothing, works of art, antiques, bicycles
- Zero rate of 0 percent applies to essential goods and services like food, water, pharmaceuticals, medical equipment, books, newspapers, periodicals, electricity, solar panels
- Exemptions include fuel supply for vessels, ship supplies, equipment for commercial vessels, goods for aircraft provisioning
- Further details on implementation and guidance to be provided in coming months
- Stakeholders advised to assess impacts and prepare for compliance
Source: fintua.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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