THE PDM’S OFFICIAL POSITION AGAINST THE INTRODUCTION OF PAYROLL TAX

As the Minister has admitted that there are alternative revenue measures. We should be absolutely satisfied that any tax being considered is absolutely necessary.

That the introduction of taxes in this climate is counter – productive to what the Government is trying to achieve in raising revenue. There are signs of recovery in the economy and we believe that the Government must be careful not to negatively impact this rebound by its decisions.

That it will negatively impact already over taxed businesses sending some out of business while increasing the underground business world. A number of Business Licenses are being surrendered and many are not certain that it can pay the hiked rates in Licenses even after the Government has extended its payment by two further months. Unfortunately this is perhaps still not helpful as the Summer months are the slowest months for most businesses in these Islands.

That it is not the broadest base possible and seeks to tax a very small pool of residents.

That the tax is labour intensive and very difficult to police.

That the concept of employers being included in payroll tax and benefits are philosophically wrong.

That the Bill has conflict of interest issues. There are areas exempted who rate can be quantified and areas included such as rents which can prove challenging to quantify.

That the Government has not demonstrated that it is serious or wants to collect its arrears. Even now, the Government has no accurate Arrears List.

That the Government has failed to address measures to cut expenditure in the healthcare area. Its sluggish approach to conducting Audits that moves the cost overrun from TCIG to Interhealth is a major cause for concern. Any major fiscal strategy must include the reduction in healthcare costs.

That the Government has failed to present a sound Inward Investment Strategy and Plan which includes clear rules, simpler processes and aggressive marketing.

That the rate will increase as soon the Government sees that it does not yield as much as it intends and with the proposed plan to get rid of revenue for Business License rates pre their attack on them will spell loss in millions of dollars.

That this Bill creates a powerful Authority that we believe will not be able to manage this new tax and equally a powerful Minister who will have wide powers.

That many loop holes will be found and especially in areas that are already difficult to police with persons avoiding temporary work permits by traveling here on Visitor’s Visa. Sec 5(2) exempts persons for low monthly hours and those who ordinarily reside overseas and does not work for 4 consecutive weeks a year.

That this is in fact an Income Tax and will alter the landscape of TCI and how we market it. We further believe that a change from our no direct taxation status cannot be decided upon “willy nilly” and especially in the absence of laying all of the alternatives on the Table.

That the creation of taxes and the approach to tax our way out of a financial mess is seriously flawed and is a lazy approach void of innovation and the widest possible consultation. The PM of France in 2011 admitted that austerity measures do not work in these type economic climates.

That there must real efforts to seek ways to stimulate the economy and encourage spending and not to take away spending power.

It will again affect negatively the cost of living as a result in an increase in overhead expenses for businesses that survive. This increase in operating business will be passed down to the consumer.

That the people’s wishes ought to matter.