Serame concedes VAT Reductions are unsustainable

• VAT went down from 14% to 12% in August
• Cooking oil and cooking gas zero-rated
• Finance minister says the measures are proving unsustainable 

The Minister of Finance and Economic Development Peggy Serame has cast doubt on her own ministry’s wisdom in temporary measures aimed at reducing certain VAT rates to combat the effects of inflation on households and the economy. 

The announcement, which includes a reduction in the standard VAT rate to 12 percent from 14 percent and zero-rated VAT for cooking oil and liquified petroleum gas, was made in July this year and prompted criticism from some quarters.