Tourism Incentive Act extended until December 31, 2012


07-July-2012

The MOFTI has announced that the following policies are now in force:

• All concessions legislated under the Tourism (Incentives) Act (TIA) have been extended until December 31, 2012. This means that all Tourism (Incentives) Act (TIA) Certificate of Entitlement are now valid up to end-2012. This policy may be reviewed after December 2012 depending on the government’s final decision on Vat.

• All importations by TIA Certificate Holders, e.g. hotels and restaurants, continue to be exempted from payment of GST, meaning that a 0% GST are applicable on imports instead of the normal 15%.

• While the tourism trade will continue to benefit from their TIA concessions on imports, the special arrangement whereby SITZ ‘Import & Wholesale’ zone traders sell GST free has been discontinued with effect from July 1, 2012. This means that ANY person or business buying from these importers/wholesalers, including holders of Tourism Incentives Act certificate, will now have to pay GST at the normal rate of 15%. This policy ensures a level playing field for all traders.

• The current 15% GST on turnover i.e. on bills, invoices, etc., applicable for the tourism industry remains in force.

The ministry would like to re-emphasise that the tourism sector continues to benefit from TIA concession as long as they import directly.

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