Sugar, milk freed from VAT

SUGAR and fresh milk will be VAT zero-rated soon, according to an amendment to the Value Added Tax (VAT) Act tabled in Parliament yesterday.

‘The global financial crisis resulting in an economic downturn affecting Namibia calls for domestic interventions,’ Deputy Minister Tjekero Tweya said yesterday.’Government has decided to zero-rate sugar and fresh milk to assist especially the low-income consumers.’The zero-rating will apply to wet and dry white and brown sugar and to fresh milk.Another zero-rating will apply to medical and paramedical services and no VAT may be charged for funeral services either.Once adopted, and also passed by the National Council, the zero-rating will come into force in the next few weeks.