In measures meant to raise revenue, Treasury has in the Tax Laws (Amendment) Act, 2020 imposed a 14 per cent Value Added Tax (VAT) on farm implements. Farm implements are classified as goods under plant and machinery category in Chapter 84 and 85 of the VAT Act 2013. He warned that the 14 per cent Value Added Tax would soon come back to haunt the country. Critics have also hit at the decision to place farm implements in the same tax category as industrial machinery. He said that it would heavily hit dealers of farm implements in the country.

Source: Standard Digital June 09, 2020 05:31 UTC