New Government Policy Measures To Promote Health And Wellness And Support The Creative Economy

PR  – This week, the Government of Grenada rolled out additional policy  measures as part of its 2023 Budget implementation, aimed primarily at promoting health  and wellness and supporting the creative economy. 

The implementation of the 5% increase in Value Added Tax (VAT) on sweetened  beverages, the 100% relief from Common External Tariff (CET) and VAT on production  equipment to support the creative economy, and the increase in excise tax on alcohol  and cigarettes, took effect from Wednesday, March 1, 2023. 

Sweetened Beverages Tax 

The additional 5% VAT on sweetened beverages will not apply to: 

drinks for infant use put up for resale; 

100% natural fruit and vegetable juices; 

nutritional supplements intended for dietary support; 

rehydration drinks used in sports; 

milk and soya-based preparations for infant use; 

all beverages containing only natural sweeteners, including stevia, raw honey,  molasses, coconut sugar, monk fruit sugar and sugar alcohol, namely erythritol  and xylitol. 

Creative Industry Support 

The 100% relief on CET and VAT for business use will support creatives in starting or  expanding their business. To apply for this support, interested individuals and  organisations must first register with the Grenada Office of Creative Affairs (GOCA). For  information on registration, email: creativeaffairs.gov.gd. 

Alcohol and Cigarette Tax 

The increase in Excise Tax on alcohol and cigarettes, which was delayed to March 1 due  to technical and administrative reasons, is now in effect. This increase will not apply to  alcohol-based products such as rubbing alcohol and hand sanitizers. 

Additionally, the Income Tax (Amendment) No. 22 which came into force on May 29,  2014, and imposes a 15% withholding tax on the excess of lottery winnings over $10,000  was also implemented from March 1, 2023.

The application of 15% VAT on a supply of tickets by the National Lotteries Authority or  the Windward Island Lotteries Commission will take effect from April 1, 2023.