Basic foodstuff VAT-free for years
I am unaware that VAT had been reintroduced on basic food items. To the best of my knowledge basic food items have long been "zero-rated", meaning that there has been no VAT chargeable on basic food items for many years.
By letter dated 12th July 2006 I had cause to draw to the attention of then minister in the Ministry of Finance Conrad Enil that there was no VAT applicable to basic food items. In addition, basic food items do not attract import duty (Customs duty).
Editors and other readers who may be interested please refer to the undermentioned Legal Notices for those items exempted from import duty (Customs duty):
Legal Notice No. 14 of 2004, No. 206 of 2005, No. 249 of 2005 and No. 67 of 2006.
For zero-rated items which do not attract Value Added Tax please refer to the Finance Act of 1992 and to Legal Notices No. 31 of 1991, No. 215 of 1996, No. 176 of 2003, No. 290 of 2004 and No. 20 of 2006.
I have merely copied the above information from the letter which had been sent to Mr Enil which has not been updated.
It may be instructive to learn the source of the Honourable Prime Minister's information relative to VAT on basic food items.