2018 General Election: NFP promises VAT exemption on basic food items

THE National Federation Party’s manifesto sees VAT on 15 basic food items made zero-rated.

These proposed items include rice, flour, cooking oil, tinned fish, tea, powdered milk and liquid milk, butter, noodles, potatoes, onion, garlic, canned tuna, locally-produced eggs, bread, and locally-produced frozen chicken.

Apart from these, NFP is willing to exempt VAT on eight additional items including prescription medicine, kerosene, women’s sanitary products, baby milk formula, diapers, toilet paper, soap, and imported fruits.

Excise duty on locally-produced beer and spirits will be reduced by 20 per cent while there will also be a reduced duty on lamb products, ghee, school shoes, and school bags.

Social welfare allowances will also be increased.

Below is the proposed breakdown.

VAT free or zero-rate, the following basic food items:

1. Rice

2. Flour

3. Cooking oil

4. Tinned fish

5. Tea

6. Powdered milk and liquid milk

7. Butter

8. Noodles

9. Potatoes

10. Onion

11. Garlic

12. Canned tuna

13. Locally-produced eggs

14. Bread

15. Locally-produced frozen chicken

Make VAT FREE, the following items:

1. Prescription medication

2. Kerosene

3. Women’s sanitary products

4. Baby milk formula

5. Diapers

6. Toilet paper

7. Soap

8. Imported Fruits

Reduce duty on the following imported items:

Lamb products

Ghee

School shoes

School bags

Reduce by 20 per cent Excise Duty on locally-produced Beer and Spirits.

Pensions

Increased social welfare allowances for our poorest people, the sick and intellectually handicapped below the threshold of $30,000. Social Welfare allowances for the ages will be increased as follows:

Age group Allowances

60 – 65 yrs $100 per month

65 – 70 yrs $200 per month

Over 70 yrs $300 per month

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