Bramble wants gov’t to account for money from higher customs charge

East Kingstown MP, Fitz Bramble, wants the Ralph Gonsalves government to say whether it has raised the money it had hoped when it increased the Customs Service Charge by one percentage point.

Bramble told a New Democratic Party campaign event in Ottley Hall that the government should also say what it has done with any money over the amount that the higher tax had intended to raise.

In his 2021 budget address, Minister of Finance Camillo Gonsalves said the government was stepping back from implementing a slew of revenue-earning measures in light of the impact of the COVID-19 pandemic.

He, however, announced a one-percentage-point increase in the Customs Service Charge, saying it would go toward funding regional agencies and organisations from which St. Vincent and the Grenadines benefits.

Gonsalves had said the new measure was expected to raise almost EC$10 million, adding that even though the Customs Service Charge would increase from 5% to 6%, it was still among the lowest in the region.

However, Bramble, an economist, said that he plans to “take on” the finance minister “very soon” on the issue.

“And I’m going to ask him to report to the people of this country, since you increased the Customs Service Charge, how much revenue has increased since then,” Bramble said.

He noted that if the one percentage point increase has resulted in more money than the government has hoped, it means that the government is exceeding its target.

“Now, what do you do? Do you leave the 1% and use that extra money to do other things like help … the elderly buy medication, or to help children with school books or do you take off the one percentage point … and you ease the pain on businesses so they don’t have to charge such a high price?” Bramble said. 

“Those are the kinds of sensible and practical decisions you have to make when you’re dealing with volatile and small economies such as ours.”

Bramble raised the issue as he was discussing the minimum wage and balancing the benefits to workers and challenges to employers. 

“You don’t just go and raise minimum wage because everybody say you should do it and it go look good. You do it because the people deserve it, but at the same time, you do it so that you don’t put people at a greater disadvantage in the end,” he said.