NDP's plan to tax its way to prosperity will fail – Hon Andrew A. Fahie
Honourable Fahie was at the time giving a reaction to the $331 million budget presented by Premier and Minister of Finance Dr The Honourable D. Orlando Smith in the House of Assembly on Monday February 8, 2016.
“It was an interesting budget. The Premier read and delivered what he was reading extremely well,” he said.
According to Honourable Fahie, it is clear that more revenue is intended to be derived from many increases in Government fees and taxes of the people in a time when most persons have less.
“In that vein I must respectfully state that a government that seeks to tax its way to prosperity is like a man standing in a bucket and seeking to lift himself to a higher place - a task that has been proven as one of colossal failure.”
However, he said the Opposition will remain hopeful for the best. “I want what's best for our Virgin Islands and will assist in whatever way I can do to secure a brighter future for present and future generations while ensuring from henceforth that best practises in accountability and transparency are realised," Hon Fahie said.
New taxes & fees to bring in $20 million yearly
During the budget speech, the Premier said that based on the challenges from the international scene the territory has not been able to achieve in the past few years what it had become accustomed to in the past. He said despite this the demands of the public and visitors and from the international regulatory community have grown.
“This means that new revenue streams are needed to handle our commitment and obligations. We have to change the old way of doing things if we are to survive,” Premier Smith said.
The Premier said the work permit structure would be changed so that the fees will be more in line to what is charged in other overseas territories.
Rates of duties granted on the CIF value of items brought into the territory will be increased. There will be a more aggressive approach to the collecting of taxes and fees.
He said these measures are expected to rake in some $20 million in revenue to the treasury.
In addition to these measures, the Government is to establish a more "progressive tax system" in 2017 to improve efficiency and reduce the cost associated with tax collection. The fee structure for hotel and yachts is to be harmonised also, said Premier Smith, with the aim of consolidating existing fees and making the system easier to monitor.
13 Responses to “NDP's plan to tax its way to prosperity will fail – Hon Andrew A. Fahie”
.