SALES TAX AMENDMENT TO IMPROVE GOV’T TAX MECHANISM
The Sales Tax Amendment, which Parliament recently passed, will improve the Government’s tax collection mechanisms.
Finance Minister Rick Hou says the amendment will ensure the prepayment of sales tax at the first point of sale for certain goods and services.
He adds, the approach will also reduce costs of tax collection and compliance cost.
“This approach would also reduce collection and compliance costs and administrative burden to effectively assess the tax obligation of the individual taxpayer. Under the current law, the liability for Sales Tax falls on the consumer or the purchaser and is included in the price that is paid for the good or service. The prescribed goods and services that are subject to Sales Tax are listed in the schedule to the Act.”