Households using over 50 electricity units to pay five percent VAT, others face 13 percent
Summary
Households consuming more than 50 units of electricity monthly will pay a 5% VAT on excess usage, while non-domestic consumers face 13% VAT on their entire bills starting July 17. The government also introduced health and education levies and revised income and capital gains tax slabs.
Key Points
- Households using over 50 units of electricity monthly will pay 5% VAT on consumption above 50 units, while non-domestic consumers pay 13% VAT on their entire electricity bill.
- The Inland Revenue Department issued directives effective from July 17 implementing the new VAT structure and additional health and education equity fees.
- Ride-sharing services are now included in the VAT system, with passengers paying 5% VAT on fares and service providers 13% on fees.
- The government revised capital gains tax and personal income tax slabs, increasing the tax-exempt income threshold and lowering the maximum income tax rate.
