Government to Honor Pre-Act Duty-Free Waivers,

The recent amendment of tax laws aimed at removing the Minister of Finance’s discretionary power to waive taxes has caused a stir in the hospitality sector, particularly hotels that have historically sought waivers on various items.

However, Senator Samantha Marshall, Leader of the Government Business in the Senate, has clarified the impact of the bill and assured businesses and individuals that duty-free waivers granted before the enactment of the bill would be honored.

According to Senator Marshall, the bill seeks to amend various tax laws and provide the infrastructural framework for accounting for waivers of custom duties and other connected purposes.

It also limits the Minister’s discretion in granting exemptions but provides provisions for certain exemptions based on specific criteria, such as goods imported for retail.

The bill also addresses other aspects, such as the Revenue Recovery Charge, Environmental Protection Levy, and Tourism Guest Levy Act of 2021, all of which have implications for tax exemptions and ministerial discretion.

The Senator further highlighted that while the bill limits the Minister’s discretion in granting exemptions, there are provisions for certain exemptions based on specific criteria.

Senator Marshall also emphasized that the bill’s impact on the hospitality sector, particularly hotels that have continuously sought waivers on every single item, was not the intended purpose of the legislation.

She clarified that duty-free waivers granted before the bill’s enactment would be honored, providing clarity for businesses and individuals affected by the changes.

In addition, the Minister will be required to prepare reports on waivers granted, ensuring transparency and accountability.

The bill, once passed, is set to take effect from April 1st, with provisions for reporting and oversight to ensure the proper implementation of tax exemptions and waivers moving forward.

In summary, while the amendment of tax laws has caused some concerns in the hospitality sector, Senator Marshall has clarified the bill’s impact and provided reassurance that duty-free waivers granted before the bill’s enactment would be honored.

The bill also seeks to provide transparency and accountability in the granting of tax exemptions and waivers moving forward.