Value Added Tax (Amendment) Act, 2022

Abstract

The Value Added Tax (Amendment) Bill, 2022, aims to reform the VAT Act by abolishing the withholding VAT agent scheme, providing exemptions for essential items such as cooking oil, tap and well water, and sanitary towels (pads), and introducing VAT on moulds used for plastics or rubber. These changes are intended to streamline VAT collection, prioritize the exemption of basic necessities, and regulate specific manufacturing inputs, thereby enhancing the tax system's efficiency and fairness