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Government has officially enacted a major fiscal measure from the 2025/2026 National Budget, with the removal of Value Added Tax (VAT) on 16 categories of commonly used food items.

Effective today, the new items have been added to the list of zero-rated goods, meaning the 12.5% VAT will no longer be applied at the point of sale.

The measure, announced on Monday by Finance Minister Davendranath Tancoo during his Budget presentation, is aimed at reducing the cost of living for consumers and stimulating growth in the local agro-processing sector.