Basic food products previously exempted from duties in the light of Valued Added Tax (VAT) will start to be taxed.
The change is part of the law that approves the revision of the General State Budget (OGE) 2020.
The basic basket consists of products such as beans, rice, wheat flour, corn flour, non-concentrated milk, powered milk, edible oil, cane sugar and soap.
The essential goods had been exempted from paying VAT under Law No. 7/19 of 24 April, known as the Value Added Tax Code Law.
In view of the economic effects amid covid-19 pandemic, the publication of 11 August Law scraps this exemption and sets a five percent VAT rate for the sale of the above products, the director of VAT services of the General Tax Administration (AGT), Wilson Donge, has told Angop.
Source: Angop
