ECONOMY

VAT…

Consumers will have to dig deeper to fill their shopping baskets as of today due to the latest hikes in value added tax (VAT). The VAT applicable on food items, non-alcoholic drinks and sweets increased to 13 percent from 11 percent on Saturday, as the government scrounges for more revenues in a shrinking economy. Other items that will be affected by the tax hike include power and water bills, transport costs and movie tickets. The 5.5 percent VAT tax rate, paid on products such as books and newspaper, has also been increased to 6.5 percent.