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Halkitis: VAT Reduction Rolled Out Smoothly

Days after the rollout of the value-added tax reduction from 12% to 10%, the Economic Affairs Minister says it has been smooth sailing so far.

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Days after the rollout of the Value Added Tax reduction from 12% to 10 %, the Economic Affairs Minister and two business officials say so far, it has been smooth sailing.

 



The rollout of the reduction of VAT went smoothly, according to Economic Affairs Minister Michael Halkitis who said so far, there haven’t been any bumps. Value-added tax was reduced from 12% to 10% effective January 1.

It was a promise made by the PLP while on the campaign trail.

The prime minister made the official announcement back in October and said the two percent reduction would also come with the elimination of the zero VAT rating on several items. Today Halkitis’ sentiment was echoed by these business reps who said it was smooth sailing.

News that VAT would be implemented across the board came with its fair share of criticism, as many suggested it would hurt the poor. CBS Vice President Brent Burrows said around 150 items in the store that were once VAT free had to be readjusted. Still both business officials say so far, the response to the VAT reduction has been positive.

Since the rollout, some have complained that businesses still charged 12 percent on items after the implementation. Halkitis said those individuals should reach out to them.

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