Mr. Speaker, I rise to congratulate our Inland Revenue Department on a whole and its Comptroller, Mr. Edward Gift on a historic best ever performance.
Inland Revenue Department (IRD) has once more demonstrated that providing world class, effective and efficient service to the general public is pivotal in achieving voluntary compliance and increasing collection of revenues.
Today, the Cabinet applauds the Comptroller of Inland Revenue and his hardworking team on exceeding its projected 2015 year collections which significantly, is our best collection year to date in our Federation’s history.
Total gross taxes and fees collected at the IRD as at November 30th 2015, amounted to $219.3m. This amount exceeds its anticipated target of $190m for the period January to November 2015 by $29.3m.
In addition the $219.3m collected for the period January to November 2015 exceeded that of the previous year’s collection for the same period under review by $26.9m (15.42%), with collections for the month of December still outstanding.
It is important to note that the $219.3m collected for the period January to November 2015 surpassed the total amount of $217.4 million collected for the entire year of 2014 by $1.9m.
Actual Exceeds Budgeted Amounts
Actual collections surpassed Budget on many tax types. On an accumulated basis, the solid performance in revenue collected for the aforementioned period has been driven primarily by the better than expected budgeted outturn realized from Corporate Income Tax, Condominium Tax, Stamp Duty, Unincorporated Business Tax and Withholding Tax. Although the Valued Added Tax was removed from food, medical supplies, educational supplies and funerals as one of the central policies of our Team Unity Government, the reduction in VAT revenue from that tax revenue was balanced by solid performance in the other tax categories.
The removal of VAT has been a corner stone element in our economic plan, to jump start the economy, by easing the tax burden on citizens and businesses. This policy was geared at putting money back in people’s pockets for spending within the economy. These results indicate that low taxes work. Low taxes can provide multiplier consumption expenditures that lead to more revenue rather than less.
The higher amounts reported for revenue collections were also supported by greater compliance activities conducted by the Department. In addition, activities implemented by the Department to expand and improve services to taxpayers, along with the implementation of strategies focused upon the collection and expanded enforcement activities to collect outstanding taxes.
As the Minister of Finance it pleases me to see the IRD bring its vision of administering the tax laws in an efficient and equitable manner to life. Promoting voluntary compliance in a manner that warrants the highest degree of professionalism and integrity, through a well-trained team and a better educated taxpaying public.
St Kitts and Nevis Fifteen Times Better Than Latin America and the Caribbean
The significant and historic rise in revenues speaks well for the buoyancy and growth in our economy. It is consistent with the International Monetary Fund (IMF) good news of a five 5 percent growth for St. Kitts and Nevis, and the Finance Ministry’s updated forecast of a near 7 percent growth. This growth rate way above the regional average for Latin America and The Caribbean, estimated at 0.3 percent by IMF in October 2015.
We are at a conservative growth rate of 5 percent, 15 times higher than the regional average. The economic actors have confidence in Team Unity and in St. Kitts and Nevis. Our corporate entities and our taxpaying public at large have been acting responsibly. We however need 100 percent compliance with our tax laws. Everyone must pay their fair and equitable share.
On this note, I hereby urge all businesses to settle all outstanding taxes or fees with both the Inland Revenue and the Customs and Excise Departments by year end 2015, to avoid legal intervention. Delinquent customers, who maybe experiencing temporary financial difficulties, are urged to visit any of our revenue collection agencies and have discussions with regard to setting up payment plans to settle their outstanding arrears.
The Government wishes to commend the general public for the support it has shown during the year in helping us to fulfill our vision of Prosperity for All.
May it please you, Mr Speaker.
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