September 7, 2007

VAT office collects $39.72m

As expected, the coffers of the Treasury have been boosted by the introduction of the Value Added Tax (VAT).{{more}}

Prime Minister Dr Ralph Gonsalves announced last Tuesday, September 4, in Parliament, that Government has yielded $4.72 million more between the months of May and July this year, than over the same period last year.

He was responding to a question asked of him by Opposition Leader Arnhim Eustace, regarding the VAT income.

The VAT was introduced in St Vincent and the Grenadines on May 1, and up to July 31, a total of $39.72 million had been collected.

The VAT replaced many of the pre-existing taxes in the country.

Dr Gonsalves, who is also the Minister of Finance, explained that $1.4 million, which was VAT paid by the Government to local companies, had to be deducted, reducing the figure to $38.32 million.

In the corresponding period in 2006, the Government collected $30.15 million under the old tax regime.

Dr Gonsalves said that imports have increased this year, compared with the same period last year, so last year’s figures had to be upped by 11.1 percent to balance this year’s increased revenue at the Customs.

With this adjustment, 2006’s revenue will stand at $33.50 million. The net increase will, therefore, be $4.72 million.

Dr Gonsalves again congratulated persons for their cooperation during the move into the new tax regime, saying that as is common in other places where VAT has been introduced, there have been teething problems. (KJ)