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Tax System To Be Fully Reviewed

Tax System To Be Fully ReviewedAntigua, St. John’s - A special task force established to undertake a comprehensive review of the country’s tax structure and rates is due to present its final report to Cabinet in nine months.

The 24-member Tax Policy Task Force chaired by Neil Coates of PricewaterhouseCoopers was announced yesterday by Finance and Economy Minister Harold Lovell during his presentation of the 2013 budget.

Lovell revealed that the group, which met for the first time this month, will consider how tax policy may be improved to create a more business-friendly environment to encourage investment and improve the viability of businesses.



After the report has been handed in, the Minister said, the next step will be to establish timelines to implement the recommendations.

The task force will examine the main sources of tax revenue and their performance; assess the feasibility of eliminating border taxes in Antigua & Barbuda; and review current tax legislation, rates, policies and structure to understand the extent to which the system facilitates an enabling business environment.

The members have also been charged with identifying how revenue responds to changes in economic performance in general, and for key economic sectors in particular; determine whether the tax revenue base has the capacity to meet and sustain Government’s fiscal strategy; investigate the relationship between compliance levels and existing tax policies and legislation; determine whether there is over-reliance on any particular taxes; and ascertain whether the tax system is mainly progressive, proportional or regressive.

“Given that our businesses have identified these issues as the main impediments to their competitiveness, we have determined that they should be directly engaged to identify corrective measures that would help to make the tax system more accommodating to business activity,” Lovell said.

The members include representatives of the Chamber of Industry and Commerce, the Bar Association, the Antigua Hotels & Tourist Association, Marjorie Parchment - Bryson’s Insurance Agency, Kim Burdon -  Trade Union Congress, Acres Stowe and Dr. Vanetta Rodgers - the Antigua & Barbuda Employers Federation, Carol Spencer - Antigua & Barbuda Cooperative Credit Union League, and Kathy David – PricewaterhouseCoopers.

The other members are Cassandra Simon - Accounting Solutions, Pedro Corbin – Goddard Catering Group, Paul Ryan – Antigua Motors, Patrick Ryan – Bryson’s Shipping and Insurance, Cleveland Seaforth – KPMG, Wilbur Harrigan – PKF Chartered Accountants, Marlon Rawlins – Banking and Finance Specialist, Avondale Thomas – Allen Thomas and Associates, Stephen Joseph – Bargain Centre Supermarket, Franklyn Braithwaite – Antigua & Barbuda Marine Association, Everett Christian - Ministry of Finance Revenue Reform Manager, Henderson Fields - Antigua & Barbuda Investment Authority, Raju Boddu - Comptroller of Customs, Ralph Warner – Commissioner of Inland Revenue, and Ted Lewis – Ministry of Finance

While the review is being undertaken, the Minister told Parliament, Government is giving immediate consideration to a Private Sector Stimulus Package in order to boost economic activity.

This initiative, put forward by the Antigua & Barbuda Employers Federation, calls for a duty-free period where local businesses would be able to import merchandise free of duty for sale to the public.

“The Government will work with representatives of the ABEF to finalise the details of a feasible programme that can be launched in 2013,” Lovell said.



He added that the aim is to twin this intervention with a Black Friday-type promotion by businesses, to ensure that both the businesses and consumers receive maximum benefit.

The Minister further announced that the 10 percent reduction in the Antigua & Barbuda Sales Tax will again be implemented from this Friday through to Monday, due to the success of last weekend’s initiative.

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14 Comments In This Article   

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The famous UPP trio

#14 labourite » 2012-12-19 06:14

9 months on a surgery table?Pedro corbin and Everette christian again? wait are these your only bright minds?why dont you include clarvis joseph in the special force and done?
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labourite

RE: Tax System To Be Fully Reviewed

#13 ECHO » 2012-12-19 02:11

TRUPZ!!
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ECHO

Look beneath the surface #3

#12 Observer » 2012-12-18 22:39

By the way you need to remove ABST at the import for businesses. That is capital that they can better use in the operation of their business. Doing business is expensive already. I have never understood why import duties are needed. Especially for goods we do not produce. Is it like a punishment for the people to want to have them? So I get punished for wanting to buy a TV or a Car. I am for a sales tax. Cause government had put the infrastructure in place for me to be able to purchase those. I am for a road tax, because government puts the roads in place. And so on. But I don't see why I should pay for bringing in goods to sell and then to pay again on the profit I make. How many times do you want to tax me for the same thing? Anyway Lovell played a smart political move, I hope Gaston has an answer to it.
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Observer

Look beneath the surface #2

#11 Observer » 2012-12-18 22:37

I mean this guy reasoning is so flawed, but his presentation is very good. Most of the persons on the committee I know to be in favor of PIT. Especially the accountants. You have to understand that this law brought a lot of work for accountants. But my professor use to say Accountants are just bean counters. Entrepreneurs make decisions to run a business and know what it takes. And as Mr. Shoul said on Observer, the middle class need to get back their spending power, cause Antiguans, like everyone else, like to spend money if they have it, Therefore government need to create the environment to boost that economic activity. Remove taxes or reduce them. Just like you did with the ABST for just two days and people went out to spend. Imagine what would happen if the duty is reduced or removed making good more affordable for everyone.
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Observer

Look beneath the surface #1

#10 Observer » 2012-12-18 22:36

Lovell is a smart and cunning politician. For him to involve so many to try to look at something one man could do and advice you on. That is clever. He is buying precious time and political capital. When the UPP came into power Dr. Cort consulted with just a few, including one from Barbados I believe, to get to introduce the PIT. And he said it was a temporary measure. A stabilization funds. Since then I guess everyone got amnesia. They forgot about it and no one asked about the funds anymore. I listen to Lovell and his justification for having the PIT and not wanting to let it go. The revenue he gets from it. He is not willing to give that up. If you didn't introduce it you wouldn't have it anyway. We indicated to you that it takes money out of the economy and pauperizes people. It did. The middle class is practically wiped out. The economy is at a standstill. He argues that people with more money spend it overseas in Puerto Rico and online sales. Well drop all your expensive import duties and you will discourage people to travel overseas to spent their money.
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Observer

its a cancer

#9 tenman » 2012-12-18 22:16

Listening the the budget debate I got the feeling that government does not see that it is the problem. Government is the body that is destroying the economy. Since 2004 we have introduced measures to allow government to cover its deficit yet it continues to rack up large deficits adding to national debt. In 2003 revenues were 430 million and in 2004 revenues were 477. in 2010 revenues were 688.9 and 2011 revenues were 623.2. In 2012 the current projected revenue is 664 million yet the underestimated deficit is 34 million (will be about 60 million since at the end of 9 months it was 46.5 million). In 2011 the deficit was 91.8 million. The deficit in 2004 was -135 million, yet after added (mostly central government) taxes garnering at least 187 million in comparison to 2004, we will still see a deficit of over thirty four million. This of course does not include the cost of off the book debts like HMB (running us at least 15 million EC in interest for 2012). In the mean time the government admits the public sector is at least 40% bloated. Government, instead of aiding the private sector in growing, insists on acting more like a cancer.

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tenman

JJ spot on

#8 Microwave chef » 2012-12-18 18:07

with the exception of one or two all of these members of the task force are friend, family, hardcore party supporters and political hacks. :-x :-x :-x :-x
The same incompetent inept corrupt dunce bunch that has assisted The UPP in destroying my beloved antigua???? all of them are better suited to oversee the mating of Jelly fish. :-* :-*
Any way, have your last fete at the people's expense again trust me if we get a competed government( thus not Gaston Brown and his bunch of recycled ALP cronies like the Chet green et al) it will not take them 9 months to investigate bring you to justice for your crimes against our nation and lock you the hell up for more than 9 months. As Chef I allow my self one foot note: should Marjorie Parchment( BRYSONS INSURANCE) not keep her focus on killing state insurance??? and the airport CEO Patrick Ryan – also Bryson’s Shipping and Insurance focus on a functional radar?
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Microwave chef

@fnpsr

#7 skyewill » 2012-12-18 13:52

You are correct it should take about 90 days however with so many people on board, that alone will slow things down. I hope the will choose a proper format and create a ficilitator position(s) with the group that mediate and push the progress along without interfaring in the operation of getting the job done. My problem is that some of the individuals work in some already critical areas and this will cause compromise on both positions in the case of Mr. Christian 3 different duties. I feel IRD and especially SS need not to share leadership with anyother organization because of the critical state they are in. An individuals span of control is weakened when burdened with too much and too diversified portfolios.
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skyewill

RE: Tax System To Be Fully Reviewed

#6 fnpsr » 2012-12-18 12:57

It takes nine months to make a baby, but it should not take nine months to review the tax structure. However, with that said, I will applaud the effort.

I just hope it is not political gimmickry, because the report will be due six months before the 2014 elections.

Concurrent with this tax task-force, there should be a task-force separate and apart from this one to study spending practices in an effort to eliminate waste, fraud and abuse.

"Let's fix the little things with RWE before we attempt to fix the big things."
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fnpsr

Goodies

#5 jj » 2012-12-18 11:45

Totally agree Wada. The thinking is we can have MORE goodies! Whatever happened to Chester Hughes big plan to lock up all the Government vehicles at weekend etc. Oh forgot they need to transport to school & church etc - after filling up with gas Saturday morning! A count of all the Government vehicles - including the A plates & transport board toys would be more than revealing!!
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jj

NINE MONTHS????????? ???????????

#4 Dessalines » 2012-12-18 11:23

Why is this team given nine months to complete an **sment and submit a report?? If you can't do it in 3 months you can't do it at all.
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Dessalines

Same crowd

#3 jj » 2012-12-18 10:04

The task force is padded with the same cronies as have been advising the past few years - Corbib, both Ryans etc etc at al!! Same pappy show different day!
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jj

two sides...

#2 wada » 2012-12-18 08:23

While I applaud a tax review, collecting taxes is one thing but the other side, how the money is spent is another. Times are tough for everyone Government included, taxing the people more with holes unplugged on the spending side will eventually lead to a disaster. With no increases in my salary over the last three, I have had to cut out personal trips, cut down my spending, cut my own g**, iron clothes to make ends meet. I do not get the feeling that the govt is doing the same. I am not suggesting deep employment cuts but certainly please look at the efficiency of the people who get paid with our money, wastage on trips, monies issued must have accountability, vehicle expenditure (fuel, insurance, maintenance) amongst other. PLEASE look at both sides!
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wada

A good start

#1 skyewill » 2012-12-18 05:25

I wish them well, seems like too many cooks to start with but a good start. I would say both the system and the high taxes need to go. It should be very easy to do business, too much bureaucracy. It is all about collecting revenue and not hassling people. It takes 5 minutes to get a business license in Broward County. So simple it would make you wonder but the idea is to create business not stall it or hamper it but to make it happen. Facilitate with great customers service and speed as long as the business is not illegal. The problem I will have is that I am tired of games and just because they say they are going to do something positive, it is usually for political expediency to when the real thing come we just don’t know if it’s for real or not. Marlon Rawlins & Stephen Joseph are credible, I would like to see Marlon him run for Public office. Still too many cronies and people who already have too much to do. No one can be effective if thy have too much to do and some have some job that need too much attention, Like SS and IRD. The human being does not that kind of capacity and it is best to focus in order to do a GREAT job.
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skyewill

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