The President has resolved to suspend collection of import VAT and excise duty from joint ventures pending introduction of revised regulations. The move aims to sort out the much-vexed issue of the 20% import VAT introduced by the 1994 Budget Act and challenged by joint ventures as a new tax not applicable to them under the terms of the Foreign Investment Decree and subsequent court rulings. The government is given until 10 February 1996 to finalise the paperwork. In the meantime non-payment penalties will not apply. Unless vetoed by Parliament, it represents a major opportunity for trading companies with qualifying foreign investment to import trading stock cheaply for subsequent resale. (Resolution of the President 3 January 1996).
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