Saturday 31 October, 2020

Budget 2020: Taxes removed on solar heaters, LED bulbs

Citizens are being encouraged to switch to renewable energy through the removal of taxes on solar heaters and LED bulbs.

Finance Minister Colm Imbert said in his 2020 National Budget presentation that tax removal on these items will take place from January 1, 2020.

It's hoped the measures will assist in helping promote more environmentally friendly practices. 

"I propose to increase the solar water heating equipment tax credit from 25 percent to 100 percent of the cost of the Solar Water Heating Equipment up to a maximum of $10,000. This initiative will benefit approximately 12,000 households and will take effect from January 1 2020."

Additionally, Imbert said taxes and duties will be removed on all LED bulbs.

"In order to support the transition to LED lighting, I propose to remove all taxes and duties on LED bulbs and appurtenances," he said. 

Imbert also proposed that from January 1, 2020, the use of Styrofoam containers will be banned, while the use of plastic water bottles in government buildings will be banned, and water coolers will be placed in government buildings. 

Government has a mandate to ensure 10 percent of its energy output comes from renewable sources by 2021, as part of its Sustainable Development Goals (SGDs)

Here's an overview of the 2020 Budget Presentation:

1. Total Revenue $47.749 B (Based on US $60 per barrel, $3 MMBTU Oil Price), total expenditure of $53.036 billion.

2. Minimum wage increased from $15 to $17.50; URP, CEPEP workers and contractors to receive 15% increase.

3. No taxes on agricultural supplies/processing costs.

4. Projected oil revenue of $11.004 B, non-oil revenue: $35.795 B, capital Revenue: $0.95 B.

5. THA to receive overall allocation of $2.283 billion, $300M financing from government for local projects in historic first.

6. Tax removal on LED bulbs, 100% tax removal on solar water heating equipment.

7. Ban on styrofoam food containers from January 1, 2019 (removal of plastic water bottles in government buildings).

8. OJT stipends increased by 10 percent, number of OJT workers increased to 8,000.

9. Tax allowance for creative industry increased from $3.0 million to $6.0 million.

10. Pension for eligible daily paid workers at a minimum of $3,500. 

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