The 2022 VAT bill adopted by the Board of Governors
On Friday, April 8, the Value Added Tax (VAT) Bill 2022 was passed by the Government Council in Suriname. The details of the bill were previously explained by the director of the tax administration, Ismael Kalaykhan, and the team that prepared the bill.
Why was VAT chosen?
The introduction of VAT is part of the economic reform that Suriname is currently implementing. The advantage of this form of taxation is that taxation is shifted more to the spending side of citizens, with private consumers of goods and services ultimately paying the tax. The advantage is that more people will pay taxes on their expenses. As a result, the informal sector is also better involved in taxation via the VAT. As part of the introduction of VAT, it is also examined how the payroll tax can be applied more efficiently, in combination with, if possible, a next step to relieve the pressure. VAT has been the norm in the region and internationally for many years and is an important step towards a more modern tax system that creates more opportunities for economic stability and growth.
What are the next steps?
Now that the Board of Governors has passed the bill, the next steps in the process are being finalized. The next important step is the company-wide consultation with various stakeholders, such as the business community, the trade union movement, consumer organizations and professional organisations. A first round of talks had already taken place in an earlier phase. Feedback from all these discussions will be taken into account to ultimately enable the National Assembly to adopt a balanced VAT law with the necessary support.
The preliminary bill will be presented to the Council of State and possibly submitted to the National Assembly, which will initiate the process of examining the bill. Various targeted campaigns will enable the company to obtain the necessary information in good time on, among other things, the operation of the law and its consequences for consumers. Entrepreneurs subject to tax will be accompanied in the best possible way to best fulfill their obligations, but also to be able to correctly claim the privileges provided for by law.
The introduction of VAT is expected to take place on July 1, 2022. Before this is possible, work will also be carried out on, among other things, internal processes as part of the reorganization of the tax and customs administration, the implementation implementation of the correct ICT system and the effective treatment of taxable entrepreneurs as customers of the tax and customs administration. At present, therefore, the goal of all parties involved is to achieve a successful introduction of VAT in our country through a joint effort.
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