Starting January, the Government will roll out tax incentives, for two years, to help stimulate investments in the manufacturing and the construction sectors as well as speed up business recovery from the Covid-19 effects.
The relief is under an initiative known as ‘Manufacture and Build to Recover Programme’, which was approved by cabinet this week.
The programme is designed to significantly reduce the cost of setting up industries of select products as well as existing firms who would like to expand their current operations.
The incentives are seeking to increase the production of construction materials, agro-processing, as well as hygiene and sanitation products.
Companies setting up industries or expanding operations in the above sectors will be exempted from import duty for materials and equipment bought for purposes of setting up the production plants.
In the event that the materials are bought locally, the firms will be exempted from Value Added Tax which is at 18 per cent.
The programme will run for two years with beneficiaries expected to have completed setting up their industries.
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