September 21, 2020

Economic Prediction For TCI Period June To 31st March 2013

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None of the British Overseas Territories in the Caribbean (Anguilla, Bermuda, British Virgin Islands, Cayman Islands or Montserrat) have Value Added Tax (VAT), so why is Turks and Caicos Islands (TCI) being unilaterally singled out for VAT?

Cayman Islands (much wealthier/populous) resoundingly rejected VAT in the Miller/Shaw Report. As Minister Bellingham stated in his London Parliament address on 18th June “this is a decision of the local TCI Government after consultation”.  We were not consulted but just told “this is coming in whether you like it or not”.  At the very least, we should have been offered a Referendum (this is no better than the infliction upon us of the Medical Tax without Referendum now sucking up “some 40% of the Nation’s income” per CFO Groves).

We islanders have no representative voice in this matter.  Some 90% of TCI residents are opposed to this form of taxation.
Which business is going to?:
a) Make Returns each month;
b) Pay VAT on all outputs whether they have been paid or even billed;
c) Pay Tax on the export of services conducted from TCI when the competing jurisdictions don’t exact such.  They will surely just relocate (see Call Centre for Turks and Caicos Airways)

Why is London allowing their local team in TCI to make this country non competitive with other BOT’S? St. Kitts and Nevis’s VAT riddled economy (the TCI VAT model comes from St. Kitts and Nevis however a democratically elected government voted in VAT) is nothing to “write home about” as it is experiencing a growth rate of ZERO % for this year and is at a standstill due to a combination of the worldwide climate and the increase in costs brought on by VAT.

VAT HAS KILLED THE CONSTRUCTION AND PROPERTY MARKET IN ST. KITTS.

“Those businesses that manage to survive the long, slow, hot summer will take whatever swift advantage they can of what hopefully will be a very active winter season and then close March 31st before Work Permits, Business Licences (at these increased rates) are due and some 21 days before the VAT Vulture lands with all the attendant disadvantages set out in “a)-c)” (above)”.
Already businesses are paying six (6) months work permits fees as they don’t have the money or are simply limiting their exposure to a very chancy economy. Given all of the above the bullying abuse by CFO Groves of the Business Community some ten days ago is inexcusable and unrealistic.

For more on this story go to:

http://www.suntci.com/index.php?p=story&id=2691

 

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