Legal Updates: Recent Legal Changes Affecting Business
Anew Excise Tax Act was enacted on March 18 and published in the Royal Gazette on March 20. The new law will become effective in September 2017 ( 180 days after publication in the Royal Gazette) and will replace and consolidate the existing excise tax laws, including the Tobacco Act, Liquor Act and the current Excise Tax Act. The new Excise Tax will change the base for computing excise tax from ( a) the existing ex- factory prices and cost, insurance and freight ( CIF) values to ( b) the “recommended retail price.” The recommended retail price is defined in the new law as “the recommended retail price that a manufacturer or importer wishes to be the selling price to general consumers.” Sections 17 and 18 of the new law provide further guidance on how this price is determined.
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