The Cabinet yesterday approved three EU-mandated tax bills which form part of overall tax reforms, and which have been forwarded to the House of Representatives for ratification.

The Cabinet approved an increase on value added tax from the current 10% to 13% as of 1 July 2002, with a further increase to 15% with effect on 1 January 2003. Further, it was agreed to implement a uniform corporate tax rate of 10% for local and new offshore companies with effect from 1 January 2003.

An increase was also approved by the Cabinet for an increase on the price of cigarettes by 20 cents per packet, proposing an immediate effect.