Prime Minister Ralph Gonsalves has denied that his government will increase the rate of Value Added Tax (VAT) by 3 percentage points, carrying it to 18 per cent.
“I don’t know where this came from,” he told a press conference on Thursday, amidst widespread public discussion about the alleged planned tax increase.
“I never contemplated an increase in the rate of V.A.T. The rate of V.A.T. is 15 per cent, which was set originally, and the rate of tourism transactions for hotels is 10 per cent,” said Gonsalves, who is also Minister of Finance.
Gonsalves is expected to present the Estimates of Income and Expenditure for 2016 later this month, and the Budget sometime after.
Yeah, I wonder where the notion of raising the VAT came from? Obviously it was suggested in a ULP meeting. Whether it was rejected then or may still be considered is unimportant until it actually becomes suggested policy.
Truth is that Ralph loves Austerity!
The worst type of Austerity is raising taxes, the better kind (that Eustace suggests) is to get rid of government entities or programs that are deemed wasteful.
Mark my words, SVG is going to have massive tax increases in these next 3-5 years. The VAT, Environmental tax, Bottle Tax, Get you package at the Post Office tax, Raising of Customs duties, raising all Governmental fees….THESE WERE JUST THE BEGINNING! It is suggested to lower the Corporate tax from 34% to 28% This will do NO good. Cuba lowered their tax from 30% to 15% and a waiver of 8 YEARS!!! Some countries in the Caribbean are 0%, and have other taxes much lower than SVG.
WHY DO WE THING INVESTORS DO NOT WANT TO COME HERE? GIVE ALL THE PROFITS TO THE GOVERNMENT…COLLAPSE AND LEAVE!
In Finance and Economics Ralph is completely LOST!
Yes he did, because someone has now mentioned 18%, it will be 17-19-or 20%.
Job 24:25, “…who will make me a liar, and make my speech nothing worth?”