- The Finance Bill 2026 introduces tax measures to widen the tax base and improve compliance.
- Services supplied directly for PPP infrastructure projects will be exempt from VAT, aiming to lower project costs and attract more investors, effective 1 July 2026.
- Several items, including spacecraft, tourism and housing construction materials, denatured ethanol, and aviation equipment, will move from VAT exempt to standard rated, increasing costs for these sectors.
- Some items, such as dialyzers, scrap metal, certain telephones, worn clothing, and goods for PPP infrastructure, will move from standard rated to VAT exempt.
- These changes are expected to increase costs in aviation, tourism, housing, and donor-funded projects, potentially slowing investment and raising consumer prices, while incentivizing PPP infrastructure investment.
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.
