New VAT on apartment sales suspended
View(s):The 15 per cent value added tax (VAT) on sales of apartments from projects after April 1 won’t be effective from today, as planned earlier, since the amending legislation to enable this process hasn’t been presented to parliament as yet, officials sources said.
Many people had rushed to buy apartments to beat this deadline with one developer saying he sold 25 units in February and expected to sell another 30 in March.
The Business Times also reliably understands that there is rethinking on this budget proposal which is likely to be differed for the time being. Meanwhile the new Inland Revenue Act valid from today has also raised doubts about the legality of the 44 double tax treaties as the new law doesn’t have the required transitional provisions to ensure the old treaties are valid.