budget statement 2012.indd - Grenada Customs & Excise Division

investment project. Specifically, the VAT should not impact negatively
on the cost of a project during construction. Government is
therefore desirous of making it possible for investors to import or
purchase locally all equipment and materials required for a project
during construction without paying VAT.
In this regard, the VAT Act would be amended so as to zero rate
purchases of capital goods and materials, from imported or local
sources, by an approved Investor, enjoying fiscal incentives during
the implementation phase of a project.
Investors would be required to obtain authorization from the GIDC
for zero rated purchases on capital goods and material. For local
purchases, investors would also be required to provide the name of
the local supplier and the quantities to be purchased.
Mr. Speaker, this amendment seeks to encourage Investors to purchase
locally and spread the benefit of the projects to various sectors of
the economy. It should address concerns raised by our local private
sector.
Cooperatives
Cooperatives have played a critical role over the past 150 years as
a viable, values-based, member-owned business model. In recognition
of this role, the United Nations has designated this year as
“The International Year of Cooperatives”. The primary objective is
to foster a supportive environment for the continued growth of this
critical sector.
Approximately 41,000 Grenadians are members of credit unions and
other productive cooperatives.
Our Government views the sector as an integral partner in achieving
higher living standards. As such Government will strengthen its
dialogue with the sector to enhance its contribution to national development.
In this regard, we recognize the vital contribution of Civil
Society Organisations and Non-Governmental Organisations to the
cooperatives sector.
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2012 Budget Statement