Financial Market Brief 19 August 2016
In recent times there has been increased commentary on the utilization of the substantial Value Added Tax (VAT) receipts collected by the government. In an effort to improve the revenue intake and to increase government revenues as a percentage of national income, VAT was implemented at 7.50% on January 01, 2015. Since its implementation, VAT collections have consistently exceeded expectations. For the 11 months of FY 2015-16 (Jul. 2015 – May 2016), the government collected $600.20 million in VAT receipts. While impressive, the substantial VAT intake has masked the slowing trend in overall government revenues. For instance, government revenue receipts for the first five months of 2016 were $3.18 million or 0.37% lower than the same period last year, standing at $844.48 million. Still, during this period, VAT receipts expanded from $182.05 million in 2015 to $282.64 million in 2016, a whopping 55.25% increase. Weekly_Market_Recap_19_August_2016 Click here for full Weekly Market Recap

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