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.
