BASSETERRE, St. Kitts – AS the Federation’s economic course for the upcoming financial year is being charted, President of the St. Kitts and Nevis Chamber of Industry and Commerce (CIC) Damion Hobson has declared with certainty that “there is no appetite for any new taxes”.
In delivering his speech last week at the National Consultation on the Economy, Hobson explained that the Government’s coffers could be filled through avenues other than the imposition of new taxes.
“The task of meeting revenue targets and balancing that obligation with your social and political realities is never easy. We are aware that the Government is under some pressure from international agencies to extract greater revenues through higher taxation or through the expansion of the tax net. Government is also under pressure to expedite the land-for-debt swap with National Bank.
“We understand the challenges of Government to fill its revenue gaps and no doubt the sale of those vast parcels of lands must be tempting. But the land-for-debt swap deal was and remains a contentious issue that Government is expected to handle with a balance of social sensitivity and fiscal pragmatism.”
He said there is “a lot of uncertainty” within the realms of the business sector concerning “the road ahead for the economic advancement of the country. Perhaps the path will be lit when the 2015/2016 Budget is presented in December. Many are awaiting the disclosures of the new federal budget before certain investment decisions are made”.
Rather than the imposition of new taxes, Hobson said the CIC is suggesting that more efficient tax collection be employed.
“Like the IMF, the Chamber believes that greater efficiency in the collection of existing taxes could lead to higher revenue levels for government. Another means to greater economic activity and higher revenue is the enhancement of the corporate environment to spur more domestic investments.”
