Tax Update: New Prakas on VAT Exemption for Basic Food Items
Subject: Tax

The Ministry of Economy and Finance released Prakas No. 171 on March 20, 2024, which, through the end of 2028, exempts fundamental food items that are necessary for everyday living from the VAT as a State burden. The variety of staple foods included, such as fish, poultry, eggs, and shellfish, etc., is still the same as it was in earlier rules. This Prakas differs from its predecessors (Prakas No. 009, No. 168, and No. 361) primarily in that it is longer, extending the exemption's effectiveness to five years instead of the previous two years.