The Cabinet has been looking closely at raising more money this year through taxation following the deferment of Value Added Tax -and has started by targeting the housing, hotel and tourism sector.
His Excellency Governor Ric Todd chaired Wednesday’s meeting held at the NJS Francis Building on Grand Turk where the members discussed proposed changes to taxation legislation. These involve amendments on stamp duty rates and an increase in accommodation tax from 11% to 12%.
The Cabinet also wants to broaden accommodation tax to other services and plug a loophole in the Hotel and Restaurant Taxation Ordinance on the definition of premises for board and lodging. The Cabinet is drafting legislation for new stamp duty rates and hiking accommodation tax to 12
per cent to become law on July 1st this year.
Cabinet made it clear it requires key elements of the draft Financial Strategy and Policy Statement to be completed and agreed that further work should be done as quickly as possible to finalize the FSPS.
Given the approaching end of the Financial Year, Cabinet agreed to an additional meeting next week Wednesday, 20th March.
Here’s Damian Wilson with details of the rest of the Cabinet business.
The Cabinet agreed to put to the House of Assembly a minor technical change in terms used in the legislation relating to money laundering. It will also support the Governor in approving inter-related legislation on companies and the proceeds of crime and regulations concerning Anti Money Laundering – and Prevention of Terrorist Funding,
non-profit organizations and companies fees. Cabinet also gave the go-ahead to approve two contracts on fencing and well drilling for the building of Grand Turk’s a new reverse osmosis plant on Grand Turk. The Cabinet discussed a paper on the Medium Term Outlook of the Port Authority. It underlined the role of ports in the development of TCI; looked to the new Port Authority Board to play a key role in this; and agreed the importance of drawing up a strategic plan for the development of ports on TCI. Cabinet further agreed to recommend to the Governor that he appoint Ms Denika Been as Secretary of the Port Authority Board. The Cabinet confirmed its commitment to the creation of a strong and effective Exchange of Information Unit in the Ministry of Finance and agreed that the appropriate level of resources for the Unit would be agreed in the budget round.
This is Damian Wilson for RTC News.
