FCO Minister, Mark Simmonds, responded to Premier the Hon Dr Rufus Ewing yesterday evening in relations to a letter from the Premier dated 29 January 2013 which raised a number of concerns about the proposed implementation of VAT in the TCI from 1 April 2013.
A copy of the letter was also sent to the Leader of the Official Opposition Hon. Sharlene Robinson,simultaneously.
The Government and Opposition have clearly stated their opposition to the implementation of VAT.
The UK Government has agreed that VAT will not be implemented in the TCI at this time. According to the FCO Office, “It remains Her Majesty’s Government’s (HMG) view that VAT would provide a more stable, fairer and broader based system of revenue for TCI than that which is currently in place.”
‘The Government of TCI has a responsibility to ensure sound finances in the Territory. This includes constraining expenditure within the legally binding fiscal framework which is now in place and being able to refinance its debts in 2016 without a further UK Government loan guarantee.’
According to the FCO, ‘The TCI Government will face more difficult choices to ensure stable and sustainable revenues and expenditures in the absence of VAT.’
HMG is clear that we will not accept a return to the dire financial situation in TCI which prevailed before the Interim Administration.
Meanwhile, the TCI is waking up to good news today, one citizen said, ‘VAT is not a good thing for us at this point, the economy is just rebounding and some of us still have hell feeding our children let alone paying higher prices.’ A professional businessman in the Capital said he has no problem with VAT, just the timing.
RTC News will have more on the story following the Premiers press conference.
Attached is a copy of the letter sent to the Premier by the FCO Minister Mark Simmonds.
