Since 2011, more taxes were implemented, and the cost of living increased while hundred of people lost their jobs. All was the decision of our administration, it was their choice, not the British. They met the entire Civil service with a salaries freeze , including theirs, but instead of dealing with the situation, they complied with it and made no changes, 3 years later GOA owed 35 millions EC$ to civil servants and we, the tax payers, will be paying for that. The Actual budget for 2014 shows no form of payment planned , which mean, so far the idea of paying back is aside. Note that when the actual administration term ends in 2015, all the ministers and chief minister will be paid but not the civil servants. Think how these are affecting you for the last 3 years and what were the main economic changes or benefits from these implementations. #1 An increase in the tax rate of Property Tax from .0015 to .00375 (rate was more than doubled) #2 The implementation of a 7 per cent levy on the sale of petroleum products, such as gasoline and diesel at the retail level (explaining our rate @ USD 6.50/gallon) #3 The introduction of an Interim Stabilization Levy (was created for one year and had to end Dec 2012, the first time it was renewed they were promising the creation of Health funds, since it was renewed twice and no health funds was created) #4 An increase from 1 per cent to 3 per cent in the Customs Administrative Surcharge (it is today 6% of administrative charge, forcing you to pay duties on all basic items that were free before, like milk, baby food, etc....drinking water was increased to 20%+6%, and all others increased by 6%) Budget 2011 (page 15) Madam Speaker, fellow Anguillians let us all face the reality. The reality and I say this with no joy, is that unfortunately new taxes will be introduced in 2011. These new revenue streams are expected to generate $21,307,700 million. The new tax revenues will be derived mainly from our domestic sources and are in the areas of Property Taxes, Levies, Licenses, and Surcharges. Madam Speaker, the details on these new taxes are as follows: an increase in the tax rate of Property Tax from .0015 to .00375 Madam Speaker, whereas this is the second tax rate hike on Property Tax within the last two years, it is important to note that this was done to make the revenue streams more sustainable. the implementation of a 7 per cent levy on the sale of petroleum products, such as gasoline and diesel at the retail level This new levy is not intended to cause undue burden on our people, but rather to promote our policy for the use of alternative energy and a “greener” Anguilla. We must ensure that the environment we all enjoy now is preserved for our future generations. the introduction of an Interim Stabilization Levy This new levy will, in the short term, raise the revenue needed to help stabilize our economy but Madam Speaker, it goes beyond that. It is also a stepping stone to the National Health Fund. Madam Speaker, its 16 implementation has been delayed to facilitate further consultations and crucial preparatory work. The Interim Stabilization Levy will be levied on employees at a rate of 3 percent of gross income and matched by employers. Self-employed persons will be levied at a rate of 6 percent. marginal increases on various licences These increases Madam Speaker, are on Drivers‟ Licences, Liquor Licences, Food Premises Licences, and Villa Rental Licences. an increase from 1 per cent to 3 per cent in the Customs Administrative Surcharge Madam Speaker, we know that generally such increases may add to business costs but after careful analysis, it was decided that these increases are necessary. Madam Speaker, the Inland Revenue and Customs Departments account for the collection of more that 85 per cent of Government‟s revenue. While tax collection has increased, the manpower has not done so proportionately and is unlikely to do so in the near future. The intention is to increase manpower in these departments by re-deploying staff from other departments to assist in the tax collection process. We must be creative when the situation demands and this is one way of getting more done with less. We recognize that the timing of the introduction of these new tax measures is not the most opportune, Madam Speaker. However, with the severe deterioration of our fiscal balance there is an urgent need to improve our overall balance and decrease the deficit. Madam Speaker, our approach is a gradual one and in this way is inconsistent with the more draconian one being demanded by the FCO. As such, we ask the indulgence of our people as we strive to bring financial stability back to our country. Madam Speaker, I am confident that our people will respond in a manner which shows that we have not lost our sense of country which has always been a hallmark of the Anguillian people.
Posted on: Sun, 23 Mar 2014 13:41:34 +0000
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