BASSETERRE, St. Kitts, 8 January, 2010 (Labour Secretariat) - Local economic pundit and social commentator Mr. Schniedman Warner has distanced himself and statements he had made on 98.9 WINN-FM from a PAM article which purports that Prime Minister Douglas has secret plans of raising taxes.
The article, among other things, referred to Warner as the expert with insight into the secret plans of Dr. Douglas by associating him with the sentiments of PAM candidate Ronald Louie Williams that the government is “trying to pull the wool” over the eyes of the people.
Warner in an interview with the Labour Party Secretariat categorically said that the he denies “making any assertions about secret plans by the Prime Minister to raise taxes”.
He went further to state that the government has shown through preparatory work that it is putting things in order to introduce a VAT and by his analysis he said that he “would not be surprised if the VAT were to be introduced later 2010”.
Warner further clarified that his statements on radio were made in reference to the fiscal alternatives available to the government in order to achieve a balanced budget in these tough economic times. Increased taxes, he said, are always open to the government, but he claimed never knowing of or speaking about any secret plans by the Labour Party Government to do so.
Comptroller of Inland Revenue, Mrs. Beverly Williams dismissed the article as unfounded and malicious.
“The government has no plans of raising taxes”, she said. “We are presently engaged in tax reform. It is expected as times change reforms would be needed as there are always newer and better ways of doing things.”
Financial Secretary, Mrs. Janet Harris said that there has not been any secrecy with regard to the investigation into the practicability of introducing a Sales Based Tax like VAT in the Federation.
“The budget for 2009 revealed that a tax reform unit was being established. Its main purpose is to examine the feasibility of a VAT,” Harris said.
Harris went on to say that a VAT is not an additional tax but rather a replacement tax as it will be expected to replace the consumption tax and other nuisance taxes.
She further stated that VAT, if introduced, will not exceed the 15 -17% threshold now in practice where the VAT is in operation in other Caribbean islands. If introduced, it will replace a consumption tax that ranges as high as 21%.
“On all accounts, PAM is seeking to use lies about taxes to scare voters away from Labour”, revealed one voter. “Labour has held this economy together in tough time and I trust them with the financial future of my country, he ended.
Media house SKNVibes later Monday placed the following addendum to the article: SKNVibes spoke today (Jan 8) with Mr. Schneidman Warner, who categorically stated, “I said that I expected existing taxes and fees to be raised and VAT would most likely be introduced before the end of 2010. But I unequivocally refute, even suggesting that there is a secret plan to raise taxes.”
