Egypt court overturns President Mursi parliament order
The highest court in Egypt has overturned a decree by President Mohammed Mursi to recall parliament.
Mr Mursi had issued the decree in defiance of a military council ruling that dissolved parliament.
Members of parliament gathered for a brief session earlier in the day before the ruling of the Supreme Constitutional Court was announced.
Thousands have gathered in Cairo's Tahrir Square to protest against the court's latest decision.
Protesters chanted slogans calling the decision "illegitimate" and denouncing the military, reports say.
The BBC's Jon Leyne in Cairo says the ruling leaves unresolved the question of who holds the power usually vested in parliament and many months of legal wrangling over what happens next could now follow.
Both the president and the military will want to show they are in charge, he says, but the struggle will probably be played out in courtrooms and the backrooms of politics, rather than on the streets.
'No other agenda'
The same court sparked the current impasse last month, when it said the parliamentary election was null and void because of flaws in the law setting it up.
The Muslim Brotherhood's Freedom and Justice party - Mr Mursi's power base - has the biggest bloc of seats in the parliament, and the current political impasse is seen by analysts as being part of a power struggle between the Supreme Council of the Armed Forces (Scaf) and the party.
Members of parliament met for their brief session before it was adjourned by Speaker Saad al-Katatni.
Mr Katatni said that by holding the assembly, MPs were not contradicting the dissolution ruling "but looking at a mechanism for the implementation of the ruling of the respected court. There is no other agenda today".
The MPs approved Mr Katatni's proposal that the parliament seek legal advice from a high appeals court on how to implement the supreme court's ruling on the election.
Some non-Islamist MPs boycotted the session, criticising Mr Mursi for what they said was an attack on the judiciary.
The liberal Free Egyptians party said Mr Mursi's "violation of the Supreme Court's decision" represented a "challenge to the legitimacy of his own rule", as Mr Mursi had taken his oath of office in front of the court.
The Scaf said it was confident "all state institutions" would respect the law and constitution.
The dissolution of parliament took place the day before Mr Mursi was elected in Egypt's first ever free presidential poll.
It is unclear how events will unfold as the situation - with the new president elected without a new constitution having been drafted - is unprecedented, analysts say.
At the same time as dissolving parliament, the Scaf also issued a constitutional declaration stripping the president of any authority over the military, giving itself legislative powers and the power to veto the as-yet-undrafted constitution.
US Secretary of State Hillary Clinton on historic Laos visit
Hillary Clinton became the first US secretary of state to visit Laos in 57 years, in a historic trip discussing economic ties and unexploded bombs.
Arriving in the capital Vientiane from Vietnam, she met Prime Minister Thongsing Thammavong and Foreign Minister Thongloun Sisoulith.
The US is spending $9m on cleanup efforts for unexploded ordnance from the Vietnam war in Laos this year.
Mrs Clinton will then head to Cambodia for an Asean meeting.
The US dropped two million tons of bombs on Laos during the Vietnam War and unexploded bombs are still affecting lives and agriculture in the South East Asian nation.
The last top US diplomat to visit Laos was John Foster Dulles in 1955.
The US and Laos also "agreed to improve and further facilitate the accounting operations for American personnel still missing from the Indochina War era", said a statement released following Mrs Clinton's meeting with Mr Thongsing.
The two sides also discusssed Laos' pending entry into the World Trade Organization (WTO).
Mrs Clinton visited a Buddhist temple and a prosthetic centre funded by the US, the Associated Press reports.
Another key agenda of the trip, reports say, is the controversial Mekong River dam, which critics say would impact the environment and millions of lives.
The $3.8bn (£650m) hydro-electric dam project at Xayaburi has caused tension among Mekong region countries - Laos, Vietnam, Cambodia and Thailand.
In April, a multi-billion dollar contract was signed for a Thai company, CH Karnchang, to build the dam.
The Lao government has pledged not to go ahead with the project until environmental issues have been resolved.
However, activists say work on the project has already begun, with reports and photographs emerging of construction vehicles in the area.
'Pivot toward Asia'
Mrs Clinton's trip is part of a tour of Asia which analysts say signals the United States' growing interest in the region.
"My trip reflects a strategic priority of American foreign policy today," she told reporters in Mongolia earlier this week.
"After 10 years in which we focused a great deal of attention on the conflicts in Afghanistan and Iraq, the United States is making substantially increased investments - diplomatic, economic, strategic and otherwise - in this part of the world. It's what we call our pivot toward Asia."
At the Asean regional forum later this week in the Cambodian capital, where she will join counterparts from the 10-nation bloc and other Asian countries, including China, tension in the South China Sea is expected to top the agenda.
She had earlier urged progress on a code of conduct for resolving conflict in the disputed waters between China and several South East Asian nations.
EDITORIAL: TAXATION AND NO REPRESENTATION
I grew up hearing about, and when I was able to read, reading about the American war for Independence and the Boston tea party affair. The spark that lit the fire for those incidents of history was the imposition of taxes on the American people without them being represented. The phrase was coined “No taxation without representation”! The British had imposed a tax on imported tea which the American colonist said that they were not prepared to pay. When the ships were anchored off in Boston Harbour, they refused to allow them to be offloaded and in the dead of night, dumped all of the tea overboard, and this became known as the Boston Tea Party!
With respect to the Turks and Caicos Islands, VAT or Value-added Tax is to be imposed on us by 1st April, 2013. When the question was raised in the UK Parliament by Andrew Rossendale, Minister Bellingham’s response was that the UK was not imposing this tax on the people of TCI, and it was left up to the local TCI government, whether or not it should be done. What he failed to say though, was that the current government was imposed on us by UK law, because the Interim Constitution Order is UK law. Furthermore, this law sets out a sham, that gives cover to the UK government, but there is no real representation of the people, by the people and of the people in the two puppet bodies that have been set up, namely, the Advisory Council and the Consultative Forum.
The order that sets up these two bodies clearly states that they can give the Governor advice, but he need not take that advice. This had held true on a number of occasions, as the advice given was clearly ignored by the Governor. So Minister Bellingham, you cannot issue platitudes in the House of Commons to contrary and then think that it would be swept under the carpet by the people of the Turks and Caicos Islands.
The opposition to the implementation of VAT in TCI has the total support of all the people here! This is one time that I have seen the people acting in unison for a worthy cause. No amount of sugarcoating can mask the fact that all of the people affected by this tax are in opposition to it. Clearly the premise on which the imposition is being made has been shown to be completely flawed and by the words of the chief proponent, Dr. Hugh, the CFO. It must be said that what has been advocated as consultations, has been nothing more than a farce. No one has said that money necessary for the management of the country and the provision of the necessary social services and infrastructure should not be raised. What clearly is the case is that VAT in its present form and timing is not in the interest of Turks and Caicos Islanders.
VAT in our case, is clearly designed to remove the collection of revenue from those that can afford it and place it squarely on the backs of those that can least afford it, the average “Joe Blow” down the street. In our context, this cannot be fair.
In spite of what Professor Hugh is saying, the opposition to him and his tax is gaining momentum. Mr. Stanbrook, by setting up the TCIBC and employing a public relations firm to lobby for and on our behalf is testament to the weight being applied to the cause. The fight is being taken to the place where it really hurts, at the steps of the UK Chancellor of the Exchequer! This is not something that is being taken lightly. Just like the British aristocrats of the American colony led the fight against the British to get their freedom, this fight did not start with our local British aristocrats, but they have been seen to be in the forefront taking it to the British now! Sam Slattery and Clive Stanbrook, are just the tip of the spear!
When I heard that a member of the Advisory council had resigned, my mind flashed on Joe Connolly! After seeing Simon, who heads up the local PWC Partnership in conjunction with Joe coming out and blasting the Interim Administration from a technical point of view, I said it was Joe because in this particular instance, he is totally conflicted! His firm is giving advice to clients saying that this tax would seriously, adversely impact their businesses, while he is apparently giving succor and comfort to the Interim Administration by staying on, while the Governor is saying that his Advisory Council is giving him total and unequivocal support for VAT’s implementation!
It is now time to fish, cut bait or get out of the boat! We cannot allow these people to distort our economy by the imposition of this VAT tax and when the real “doo-doo” hits the proverbial fan, they are nowhere to be found! This European model of taxation is designed to keep us in total subjection. Those among us who have aspirations to make men and women of themselves can just forget it! There is no way that the children graduating in this cycle can expect to get involved in a business venture and hope to get it off the ground and be able to make a profit from it. Oh hell, I just forgot that the CFO has said that those persons so engaged, are bitching and moaning of the imposition of VAT because it would preclude them from having a reasonable life style because of their investment in a business that is turning a profit. Why should someone put his resources at risk if not to realize a profit? That is not the way of capitalism! But Professor Hugh lost a business, and was therefore has no clue as to how toturn a profit, so for that alone, he has a beef with a successful business.
So taxation without representation is going to be hard to be continued in Turks and Caicos. These fellows are out of the door, but before they leave, they are hell bent on burning down the house that jack built. They are taking the dog in the manger view, in that they cannot eat the grass, but they can surely prevent the cow from eating it!
This is no time to let up the pressure on these people. We can see the light at the end of the tunnel! So let us keep on fighting to get our rights. Do not forget that it is the squeaky wheel that gets the grease. Right now, there are many squeaky wheels here now!
by-Royal S. Robinson, MBE
VAT BILL PASSES ADVISORY COUNCIL
The VAT Bill passed its reading with the Turks and Caicos Islands Advisory Council at yesterday’s session on Grand Turk, Wednesday 4 July.
Acting Governor Patrick Boyle headed the session which saw the Bill passed to the Consultative Forum for debate next week. This session followed on from the Publication of the White Paper earlier in the week.
“The introduction of VAT is hugely important for the future development of this nation,” said Acting Turks and Caicos Governor Patrick Boyle. “Put simply, VAT will help ensure that public services receive a steady and predictable income. Public finances have fluctuated wildly in recent times. Under the present system if the money dries up what do we do – stop providing essential services?
“I am certain that the incoming Government in November will be grateful to benefit from such an improved future cash flow. The introduction of VAT will help put this country on a stronger footing for the future by spreading the same tax take over a broader more stable range of sources.
“The introduction of VAT is not about taking more tax, it is about creating more stable public finances.
“We also have listened to people’s concerns about cost increase, making the number and range of VAT exempt and zero rated items as large as possible. We have ensured that the consumer will not pay VAT on their electricity and water supplies, nor will they pay more for their VAT exempt essential items – rice, flour, fresh meat, fruit and vegetables – and a host of other everyday items too. We also made sure that VAT was not applied to resort Strata fees, which was a key piece of feedback from the Consultation period.
“I do accept, however, that VAT will be newly applied to other items by larger businesses that have to register for VAT, such as legal, accounting, architectural or air-conditioning services which have not previously included tax in their sales price and this could make them initially up to 11% more expensive if these services are not being provided to another VAT registered business. But those registered firms affected would also have the benefit of being able to offset the VAT that they pay out to their suppliers against the VAT that they bring in from their clients. We also believe that it is fairer to have all significant businesses here in the Turks and Caicos Islands paying their share of the tax burden.
“The proposed rate of VAT of 11% is deliberately set no higher than Accommodation Tax. Indeed, VAT will replace this and a number of other taxes will actually make administration easier for both Government and business.
“We have listened and are trying to do what is right for the future of the Turks and Caicos Islands. I shall work with the Chief Financial Officer to ensure that in addition to the planned development programme with businesses, that we also reconsider how we might better communicate the undoubted benefits of VAT to the TCI with the consumer too.”
The VAT White Paper is available online at: http://turksandcaicosislands.fco.gov.uk/en/news/?view=News&id=783351182
TCI Government response to the anti-VAT leaflet ‘How VAT Affects You’
Individuals
Anti-VAT Claim: Many everyday items will cost you more
This is not true. VAT in the TCI is a replacement tax. When VAT is implemented there will no longer be Communications Tax, Vehicle Hire Stamp Duty, Insurance Premium Tax, Domestic Financial Service Tax or Hotel/Restaurant Accommodation Tax. This is simpler and more efficient. Upon the introduction of VAT, TCIG will reduce import duties on most goods by 10-15% – so everyday items should not cost more. The Government set the rate at 11% in order to allow the widest possible number of everyday essential items to be exempt from VAT or be zero-rated including rice, flour, sugar, milk and eggs, chicken, fish and meat, fresh fruit and vegetables, infant supplies, personal hygiene products, hurricanes shutters, cement, steel, fuel, property leases and rents, property sales where stamp duty is applied, medical services, transportation, religious services and printed materials. VAT will be zero-rated on electricity and water supply so these prices will not rise either.
Anti-VAT Claim: VAT is worse for the less well off than for the wealthy
This is not true in the TCI model. The Government has taken great care in developing a model of VAT here that will not see a rise in the cost of everyday items (see above), utility charges or on rents. VAT is not a tax on income but a tax on goods and services but, by virtue of being simpler and more efficient, it will provide a more regular and predictable income to the Government. We need this stability to ensure planned and sustained investment in public services which have suffered significantly since the collapse on 2008. VAT helps guarantee funding and investment for essential public series which are arguably more vital to the less well off than the wealthy, who may have easier access to alternatives providers – schools, health etc.
Anti-VAT Claim: Enlightened TAX experts regard VAT as a grossly unfair tax
Unfair to whom? This depends upon your tax expert’s stance. If they believe that tax take from an individual or business should always be minimal, then, of course, they may take this view. If you believe that tax should be used for providing essential public services then VAT is a good tax as it provides a steady and predictable income with which to do so. The TCI’s public income has fluctuated wildly in recent years and this makes longer tem planning significantly more difficult. If income drops, then this must change what and how public services are provided.
Anti-VAT Claim: You should be aware that the global history of VAT is that spendthrift governments (such as the UK) use VAT to plug the ever increasing holes in their fiscal plans and inevitably VAT rises as things get worse.
VAT is a good tax for Government as it provides a steady and regular income essential to guaranteeing public services. The Interim Government has set about restoring TCI’s public finances. It has not been spendthrift. Indeed the anti-VAT campaign said in its open letter to the press on 4 July that “... it is perfectly clear that the countries (sic) finances are no longer in a mess...”. But this recovery is fragile. We do not wish to increase our tax revenues, but rather to make them more stable by simplifying taxation and broadening into sectors of the economy that currently pay no tax.
Anti-VAT Claim: VAT is currently 20% in the UK.
This is true in the UK. But a rate of 11% is proposed here in TCI – the second lowest level in the Caribbean after Haiti. Further, we are proposing a gross sales figure of $200,000 a year which is the highest in the region, the next highest figure being USD $110,000 in gross sales in Antigua and Barbuda.
Businesses
Anti-VAT Claim: it is a major book keeping headache and will cost you more in accountancy fees
This is misleading. VAT is a simple tax to administer and collect. A business will work out how much VAT it has paid out to its suppliers, and then calculate how much VAT it has brought in. If it brings in more than it paid out it submits the difference to the Government. If it pays out more than it brings in it claims a credit from Government. Further, VAT will replace five other taxes – actually making life simpler for business and Government alike. We have also targeted the introduction of VAT mainly at larger businesses with turnovers of $200,000 (and more than $50,000 if a hotel or restaurant to prevent any loss of revenue in this sector). It is likely that these businesses already keep the simple records required meaning marginal, minimal additional cost. Further, TCIG’s VAT Implementation Unit assist will assist those 400 or so businesses who qualify for VAT registration with these requirements.
Anti-VAT Claim: It plays havoc with your cash flow giving you a false picture of how much cash you actually have at hand
This is also misleading. Cash flow is essential to any business (and Government). Why would business not want Government to be run as well as their own enterprises? Also, is the Turks and Caicos Independent Business Council, a group of eminent and successful commercial figures, really suggesting that they do not know what their debts (costs) and credits (income) are at any point in time? This is an immature argument – businesses have a good understanding of how much money they have going in and out.
Anti-VAT Claim: It means your goods and series will cost considerably more and therefore people buy less of not at all
VAT is a replacement tax designed to help improve the Government’s cash flow so that it can sustain essential public services. As such, most items should not cost more. Indeed we have exempted and zero-rated a wide range of everyday essential items to help ensure this. We accept that if you are an accountancy, legal or architectural firm you will have to charge up to 11% more – but, equally, you can offset the VAT you pay on your purchases against that which you bring in.
Anti-VAT Claim: The tourism industry throughout the world as found to its cost that VAT equals drop in sales
VAT in the TCI replaces Hotel/Accommodation tax (amongst others) and is set at the same rate. If sales drop when taxation remains constant then it must be for other factors. The anti-VAT campaign has cited Barbados as a country that has suffered from the introduction of VAT. Barbados introduced VAT in 2007 and continued to grow for a number of years. Its present difficulties are due to the state of the global economy and other factors, not the introduction of VAT. Similarly, the introduction of VAT in Jamaica (where it is called the General Consumption Tax) did not bring about a negative impact on businesses, and has a higher compliance rate than other taxes.
Anti-VAT Claim: You need to be aware that this is a tax much favoured by the EC (sic) bureaucrats in Brussels who would like to see high tax administrations throughout the world
VAT is favoured by those who wish to see planned and sustained investment in essential public services, which can suffer if income drops. We believe that this statement has been made by someone whose politics are set against the institutions of the European Union.
Anti-VAT Claim: Spain is planning to raise VAT rate for hotels from 8% to 18% at the prompting of the International Monetary Fund and the EC (sic). This will kill an already struggling industry stone dead.
Like many other countries Spain is experiencing economic difficulties that are not caused by VAT. Spain has a massive tourist industry catering to every sort of tourist – from the budget conscious to those demanding the lap of luxury. It remains to be seen how any rise in VAT will affect this extremely popular, mature and well established tourist destination.
Anti-VAT Claim: A country like the UK needs VAT and other extremely high taxes because the public expenditure and benefits culture is completely out of control. Island communities like ours are not run in this wasteful fashion.
The UK is also experiencing financial challenges. The Government there has introduced a wide ranging cost cutting and revenue maximising measures, including raising VAT to 20%. Equally, the previous Government reduced VAT to 15% for a period. Again, to quote the TCIBC open letter to the press: “The Turks and Caicos has weathered the international crisis and its tourist industry has shown itself to be remarkably resilient.” But to keep the country on track and to develop in the future the Government needs the stable and predictable income that VAT provides.
The VAT White Paper is available to view online at: http://turksandcaicosislands.fco.gov.uk/en/news/?view=News&id=783351182
TURKS AND CAICOS POLITICAL LEADERS JOIN THE ANTI-VAT FIGHT
Following the release of of an Open Letter to the TCI press, part of the campaign to oppose the introduction of VAT to the Turks and Caicos Islands, we can announce that the leaders of the Island’s two leading parties have signed the anti-VAT petition as well as endorsing the contents of the TCIBC letter on behalf of their parties. In addition an Advisory Council member has quit over the VAT issue.
Dr Rufus Ewing, leader of the Progressive National Party (PNP) and Mr. Oswald Skippings, leader of the People's Democratic Movement (PDM) represent the entire electorate of the Turks and Caicos Islands.
The petition has now over 3000 signatures, which represents over half of the electorate, who clearly believe that VAT will adversely affect business in the Turks and Caicos Islands. They are calling on the Government to delay its introduction to enable a full analysis of its cost and potential impact to be performed so that there can be an informed debate as to its merits and value for the Turks and Caicos Community.
TCIBC also applauds the courage of Advisory Council member Joe Connolly who resigned his position yesterday over the VAT issue . According to a statement issued by the Interim Government’s spokesman, Mr Neil Smith, “Mr Connolly has stood down because he felt no longer able to support the Government's VAT Bill in its current form. He understands the Government's objective in trying to secure a regular dependable income through VAT, but feels a delay would give more time to assess its suitability to the Islands.”
JOE CONNOLLY RESIGNS FROM ADVISORY COUNCIL
Acting Governor Patrick Boyle accepted the resignation of Advisory Council member Joe Connolly on, Thursday, 5 July 2012.
Mr Connolly has stood down because he felt no longer able to support the Government's VAT Bill in its current form. He understands the Government's objective in trying to secure a regular dependable income through VAT, but feels a delay would give more time to assess its suitability to the Islands. "It has been a great privilege to serve my country as an Advisory Council member," said Joe Connolly.
"It has been particularly gratifying to work with my fellow Council members, and both Governors Todd and Wetherell, to try and ensure the ongoing development of the Turks and Caicos Islands." "We are certainly very sorry to see someone of Joe Connolly's great experience leave the Advisory Council," said Patrick Boyle.
"We will continue to work hard in his absence to make sure that we handover the Turks and Caicos Islands to the incoming Ministerial-led Government in only four months better governed, with improving public finances and a more accountable, independent civil service."
Crime Report and incident
A DINING room table and a set of chairs were stolen from a container located in a yard in Discovery Bay between Saturday June 30th, and Thursday July5th.
A 32 year male of Five Cays, Providenciales was arrested for Theft in connection to an incident that occurred on Providenciales in May.
MEAWHILE a 17 year old male was arrested by Police on suspicion of Burglary in connection to an incident that took place on Thursday 28 June.
St Lucia political party calls for VAT delay
After weeks of what it describes as cautiously examining St Lucia Prime Minister Dr Kenny Anthony’s motive for wanting to implement value added tax (VAT) in September -- now in October -- of this year, the Lucian People’s Movement (LPM) said it is firmly convinced that there is a sinister political motive behind the government’s attempts to railroad the implementation of the VAT in St Lucia.
While the LPM said it is not opposed to the implementation of VAT -- and is fully supportive and understanding of why it is required -- the party cannot help but see the motive behind this rush.
According to the LPM, when compared to other standard models, VAT legislation can be very complex and, if too politically motivated, can take an ad hoc path that will destroy the very essence of its implementation, namely, to achieve financial stability through effective fiscal and monetary management. The LPM warned the current administration to refrain from littering the VAT legislation with too many exemptions and privileges. This fiscal path can diminish revenue impact and will be difficult to manage, the party said, in a press statement.
“The LPM is firmly of the opinion that Dr Anthony and his government is in a rush to establish VAT during its first year in government, simply for political expedience. It is thinking in terms of the long-term political interest of the St Lucia Labour Party (SLP), and not in terms of what is economically viable for the country at this time,” the statement read.
“By implementing VAT right now, the SLP is hoping to escape the wrath of the people of St Lucia -- a wrath that is bound to occur, given the hardship that VAT will exact. It is the belief of the LPM that by so doing, the SLP is hoping that the passage of its term in office will lead to the people of St Lucia forgetting all about the economic hardship they have had to endure for decades,” the statement continued
The LPM called upon Anthony and his government to delay the implementation of the VAT to 1 January 2013, so as to fine-tune and better define a tax system that is as yet largely unknown to the general populace.
“The design of the VAT has to take into critical account our country’s public sector size, degree of openness, industrial concentration levels, literacy rates, and the size distribution of the tax to name a few. The people of St Lucia must fully understand what they are up against, before being taken like proverbial lambs to the slaughter,” the statement concluded.
Former Nightclub operator on $3M bail for trafficking Guyanese girl
Former Nightclub operator Hermalinda Parker was on Friday granted bail in the sum of J$3 million with sureties on human trafficking charges.
Human trafficking is the movement of people through the use of force or coercion for the purpose of sexual exploitation or labour.
Parker operated the Latin Movement Nightclub on Dunrobin Plaza in St Andrew. In granting bail, Supreme Court Judge Donald McIntosh ordered Parker to report to the Constant Spring police station every other day.
She is charged jointly with her husband, Anthony Parker, and her daughter, Lynn Scantlebury. Parker and Scantlebury are on bail and are to return to the Home Circuit Court on November 12 for the start of their trial.
Hermalinda Parker was held on September 1 last year shortly after she returned to Jamaica from The Bahamas.
The Crown is alleging that young girls were recruited from abroad and forced to work at her nightclub.
It is further alleged that in one case a 16-year-old minor was recruited from Guyana under the guise that she was spending the summer vacation in Jamaica.
She was forced to work at the club doing dancing and sexual acts after Parker allegedly told her that she had to work to pay for her living expenses and plane ticket.
Two women saw the girl looking very distraught and took her to a police station where a report was made. The report resulted in a sting operation being set up at the club where a number of people were arrested.
Jamaica Gleaner