VAT launch rate likely to be lowered to 10% from 15% on inflation fears
The South American state of Suriname’s National Assembly is now reviewing a Bill to introduce VAT on 1 January 2023 at 10%. The plans were last scheduled for June 2022 at 12%, and then moved to January 2023. However, the global spike in inflation has prompted the Ministry of Finance to likely opt for a 10% introduction.
The current Sales Taxes for goods and services is now 12%. This follows an increase from 10% on goods in October 2021 and rise for services from 8% to 12% at the same time.
171 countries have a VAT or GST regime.
Elements of the new VAT regime include:
- The existing 10% Solidarity Levy will be extended to 31 December 2022.
- Income and wages taxes will be modified to provide support for the less well off in the economy, and mitigate the effects of VAT on living standards;
- Many basic foodstuffs and other essentials will be zero-rated. Also exports; and
- individual taxpayers will receive a tax credit of SRD 750 per month until the implementation of VAT
Most basic foodstuffs are exempt from the existing sales tax. There is also a 25% rate on luxury goods.
Check any global VAT and GST rates via our global rate database.