Comprehensive Tax Reform For Next Fiscal Year

COMPREHENSIVE TAX REFORM FOR NEXT FISCAL YEAR

Government will apply changes to public sector fees and taxes next fiscal year. This was announced by Prime Minister Bruce Golding during an early morning sitting of Parliament on September 30 following the acceptance of the Supplementary Estimates by the Standing Finance Committee.

Mr. Golding said, "We intend in the next fiscal year to roll out the full programme of tax reform on which so much work has been done but requires decision and implementation."

Tax reform, he said, was needed because it was unfair and that his government was ready to take on the decisions that will lead to a system where the user paid the economic cost of a service rather than having the cost spread across the population.

"Issuing passports, granting licenses and monitoring private security companies, are part of the core regulatory functions of government but the cost of doing so must be borne by the service users and not be piled on to the overburdened taxpayers."

Noting that government must be a stepping stone to growth and development, the Prime Minister said that the system of incentives was outdated and not guided by policy.

"You do not fix the tax system by creating a complex, confusing, bewildering structure of incentives. Straighten out the tax system and then you will be able to see more clearly where you will still need incentives because of the peculiarities of our situation and opportunities that may need that support in order for them to be exploited."

Mr. Golding singled out several state agencies that were earmarked to be self sufficient based on user fees. These include the Registrar General's Department (RGD), Passport, Immigration and Citizenship Authority (PICA), Firearm Licensing Authority and the Private Security Regulatory.