- Service tax rate for rental and leasing services reduced from 8% to 6% effective January 1, 2026, with a temporary 2% exemption until formal legislation is enacted.
- Service tax exemptions for construction services clarified and extended, including exemptions for non-reviewable contracts and religious buildings, with defined limitations.
- Sales tax exemptions introduced for specified raw materials used in manufacturing animal feed, fertilizers, and pesticides, effective retroactively from January 1, 2026, with a refund mechanism for taxes already paid.
- Administrative policies are being used to provide immediate relief and bridge the gap between policy announcements and formal legal changes.
Source: vatabout.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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