SAN JUAN – The government of Trinidad and Tobago will reduce the rate of value added tax from 15 percent to 12.5 percent effective Feb. 1, a Finance Ministry official confirmed to EFE on Tuesday via phone.
Prime Minister Keith Rowley, who took office in September, plans to reduce the VAT rate as part of a broader plan for the economy.
While trimming the rate, the Finance Ministry has removed 99 “non-essential” food items from the list of products exempt from VAT.
The Finance Bill, approved early Tuesday by the House of Representatives, also increases the personal allowance for low-income workers.
Trinidad and Tobago is a twin-island country with about 1.3 million people.