Government to target debtors next year...process to be fair, transparent, and non-discriminatory
By VonDez Phipps
Reporter-SKNVibes.com
BASSETERRE, St. Kitts – Hon. Dr. Timothy Harris, Minister of Finance, Industry, Commerce and Consumer Affairs has declared that during the next fiscal year, his Ministry and government by extension will pay particular attention to the keen collection of monies owed to the government.
“During the upcoming year, we expect Government Departments to be even more vigilant in collecting arrears. A concerted effort will be made by all Revenue Generating Departments to collect amounts owing to government. Certain amnesty conditions will apply for a period of six months.
The basic strategies for the main Revenue Departments would include the introduction of a waiver of 50% to 100% of interest outstanding on arrears; agreeing on payment schedules with taxpayers; and using set-offs where possible.
“The Comptroller of Inland Revenue will be authorized to review taxes outside of the objection period and to expedite the processing of complaints and appeals. If taxpayers fail to honour their obligations within a reasonable period, the Legal
Department will be requested to take legal action in a manner that is fair, transparent, and non-discriminatory.”
Harris said arrears of fees to government departments will also be addressed in a similar manner and stressed that entities which fail to make “satisfactory arrangements to pay their due taxes and fees” may jeopardize their ability to benefit from concessions.
~~Adz:Right~~He said he expects that through improved efficiency in revenue collections and the projected expansion of the economy, the government would be able to meet its revenue target. Harris also indicated that there would therefore be no need for new taxes for the 2009 fiscal year.
“We will continue to re-examine the tax systems with a view to rationalizing it over the medium-term. That is why we have been giving careful consideration to the possible introduction of a Value-Added Tax (VAT) at some time in the future.
“The VAT would consolidate a wide range of taxes including Consumption Tax, Traders Tax, Hotel Room Tax, Island Enhancement Fund, Travel Tax, Insurance Premium Fee, Parcel Tax, Vehicle Rental Tax, Overseas Call and Telecommunication Fee, Export Duty and Rum Duty. It would also bring them under a single legislative and administrative framework.”
The Minister of Finance noted that the introduction of VAT would also enhance the coverage of the country’s tax system and eliminate the need for excessively high taxes on the persons who currently fall within the tax net.
He informed that Cabinet will consider a report by the Fiscal Division of the IMF and the Caribbean Regional Technical Assistance Centre (CARTAC) during the course of 2009, and make a final decision in respect of VAT.
Harris indicated that a team has been established to do the “leg work” including an analysis of the tax system and public consultation so that “informed decisions can be made”.
