Reduced VAT rate and abolition of some health charges agreed

A cut in Value Added Tax to 10 percent for books, baby food, and drugs was approved by the government on Wednesday at its regular weekly meeting. The reduce rate of sales tax should come into force from the start of 2015. Babies’ nappies did not make it into the basket of tax reduced items because of fears that a reduction here would conflict with European rules. The introduction of a reduced rate of tax is one of the government’s flagship measures. The Cabinet also agreed to abolish charges for visits to doctors and hospitals with the exception of use of emergency services.