Supplies of locally produced sand, stones, concrete blocks, plywood, logs and lumber of a type and quality used in construction and housing are Zero-rated. (Section 17 – as contained in Schedule 1 to the Value-Added Tax Act, Cap 81:05)
Forest products must meet the following requirements to qualify as zero-rated:
- They must be locally produced
- Must be lumber or similar to lumber
- Must be used for construction
It is important to note that logs are also eligible for zero-rating once used for construction;
- piles and posts used in construction will also be zero-rated.