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NATIONWIDE – Government revenue is steadily increasing as citizens and corporations become more tax compliant.
With the Prime Minister and Minister of Finance ready to deliver his 2015 Budget Address on Tuesday, May 12, the entire nation is preparing to see and hear the budget debate expected to follow on Thursday and Friday, May 14 and 15.
The Opposition failed to debate the estimates presented by the Prime Minister in the House of Assembly last week and the hope is that next week there will be a debate.
During his report on the Standing Finance Committee’s Estimates of Revenue and Expenditure for 2015/2015, Prime Minister Dr. Kenny Anthony said there was a noted growth in revenue and grants last fiscal year. The trend, he said, is forecasted to improve in 2015/2016.
According to Dr Anthony, “The Value Added Tax (VAT) is budgeted to generate $343.7 million dollars for 2015/2016. Fifty-five percent of this amount is to be collected by the Inland Revenue Department — that is, $188.9 million dollars on domestic sales and services — while 45 percent is to be collected by the Customs and Excise Department — $154.8 million dollars on international trade.”
Dr. Anthony said the projections were calculated on the monthly data received on the VAT for the last financial year.
He also revealed that revenue from income tax is expected to improve.
“The revenue earned from Income Tax — that is to say, revenue from individuals — is expected to generate $102.8 million in 2015/2016. This represents a 2.3 percent increase from 2014/2015,” he said.
He pointed out, “It is interesting to note that despite the challenging situation with unemployment, that personal income tax yield actually increased in the last financial year.”
The Prime Minister indicated that a slight increase in Import Tax is projected, while Corporate Tax is expected to increase by $77.3 million, representing an overall 8.9 percent improvement.