VAT refund program to benefit thousands

The Value Added Tax refund program under the housing sector will benefit thousands of people and also create employment.

Chief executive officer Alipate Naiorosui said the VAT refund program was announced in the National Budget to further encourage people who own land to build their home in the new year by providing a refund for those that build a house which costs a maximum of $120,000.

Naiorosui said next year, if a citizen builds a house worth $40,000 for the purpose of living in it, they would be able to claim a VAT refund of approximately $5,200 and similarly if a house was built to the value of $90,000, the refund would equate to $11,300.

According to Naiorosui, the refund from building a house can be used by the new home owner to either reduce their home loan meaning they can pay their mortgage or they can use this money to pay for their children’s education or also put it into a savings account.

He said the VAT refund is timely as the lots at Tacirua East Stage 2, Wainibuku and Waila city are scheduled for delivery in 2013.


Story by: Filipe Naikaso