Parliament’s two finance committees have neither accepted nor rejected at this stage the one percentage point increase in value added tax (VAT) but they have expressed reservations about the Treasury’s justification for it.The committees’ views were expressed in the report on the 2018 fiscal framework and revenue proposals which they adopted Tuesday. The report, which will be tabled in the National Assembly on Wednesday, noted that the acceptability or otherwise of the VAT increase would be dealt with later when the committees consider the Rates and Monetary Amounts and Amendment of Revenue Laws Bill in April.This bill is the only mechanism through which Parliament can reverse the VAT increase announced in the budget and comes into effect on April 1.The two finance committees urged the Treasury to look at other forms of raising taxes apart from VAT such as increasing ad valorem duties on luxury goods, estate duty, inheritance tax, a possible wealth tax or an additional tax on immova...
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