The Grenadian government Wednesday issued a White Paper regarding the introduction of a Value Added Tax (VAT). The Government said this would form part of the economic reform programme it has embarked upon. Finance Minister Anthony Boatswain said the reform programme is aimed at restoring growth, achieving fiscal balance and poverty alleviation. Mr. Boatswain described the VAT as a critical component of the economic reform programme. He said its implementation would assist in restructuring the tax system to make it more responsive to economic development. The Minister made it clear that VAT was not an additional tax as it will replace the General Consumption Tax (GCT), Airline Ticket Tax and the Motor Vehicle Purchase Tax. The Finance Minister said under the VAT, the tax base would be broader, allowing the new tax to be introduced at a lower rate compared to the standard General Consumption Tax. Reprinted from radioja.com