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September snippets: 10 top tax changes announced this month

As the cost of living crisis continues to bite across the world and national tax authorities take action to mitigate rising gas and electricity prices, we’ve rounded up 10 of the top tax changes announced this month:

1) Luxembourg

The government has announced it will increase most taxes in the country by 1% to combat rising inflation. This means VAT rates will become 16%, 13% and 7%, although the super-reduced rate of 3% will remain unchanged.

2) Mozambique

A major reform of VAT in Mozambique is on the way, with VAT exemptions and zero rates set to be abolished. The changes are a condition of a financial aid arrangement with the IMF and should come into effect on 1st January 2023.

3) Latvia

VAT on basic foods and energy will be cut to 5% as parliament seeks to tackle rising inflation, which now stands at 21.5%.

4) Bangladesh

A ruling by the National Board of Revenue states that airlines must include VAT at 15% on aeronautical services provided by the Civil Aviation Authority of Bangladesh.

5) ­Belgium

Goods imported to deal with the Covid pandemic will continue to be exempt from import duties and VAT until 31st December 2022.

6) Italy

Ancillary services related to the supply of natural gas will be subject to VAT at a rate of 5%, a new confirmation by the Italian Tax Authorities has revealed.

7) Nigeria

A planned introduction of VAT at 5% on telecom services has been suspended. The Association of Licensed Telecom Operators of Nigeria described it as a huge relief for local consumers.

8) Uruguay

The current reduced rate of VAT on short-term rentals for the tourism industry has been extended and will now remain in place until 30th April 2023.

9) Portugal

VAT on electricity will be reduced to 6% from the current rate of 13% from 1st October 2022. It is part of a €2.4 billion package of support announced by the Portuguese government.

10) India

Flavoured milk has been classified as a drink, not a milk, and will therefore be liable to GST at 12%. Had the country’s ruled it to be a milk it would not have been taxed.

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