- The Finance Bill, 2026 aims to widen the tax base and improve compliance.
- It clarifies that only licensed hire purchase businesses under the Hire Purchase Act can exclude financial charges from VAT.
- Informal or unregulated hire purchase-like arrangements will no longer qualify for this VAT exclusion.
- The change is set to take effect from 01 July 2026.
Source: assets.kpmg.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.
