June 13, 2008
Government revenue from company taxes on the increase

Revenue from company taxes went up by 99.8 per cent in the first four months of this year compared to the same period last year, Prime Minister Dr Ralph Gonsalves announced in parliament on Thursday May 29th.{{more}}

As he gave a report on the country’s fiscal position for the period January – April, Dr Gonsalves said that the revenue from company taxes which amounted to $16.6 million is a reflection of improved administration, but said several companies are also making a lot more money.

“There are several major companies which have been doing quite well…they have been making more money and having to pay more taxes.”

The $16.6 million from the companies is part of the overall increase in total taxes on income and profits over the comparative period last year of 33.8 percent, from $29.2 million to $39.1 million.

Income from international trade also went up from $47.26 million to 50.54 million or 6.9 percent, while domestic transaction moved from $26 million last year to $42 million.

The total current revenue for the period under review amounted to $151.2 million compared to $124.6 million last year. This is an increase of 21.3 per cent.

On the capital revenue side, there was a massive jump over the four month period from $375,000 to $11.2 million.

Dr Gonsalves said that the bulk of that money came in the area of grants, which increased from $150,000 last year to $10.77 million this year.

“When I go out and get a lot of money, they say that the Prime Minister has gone to beg or in some cases they say is joy ride…I go out to look for money for the country. It is only small minds could think that Ralph wants a joy ride,”Dr Gonsalves said.

The total revenue and grants over the four month period amounted to $162.4 million from $124.9 million last year, or a 30 per cent increase.

As regards expenditure, that went up to $152.8 million from $147.5 million last year, with current expenditure increasing by 13.3 per cent from $118.5 million to $134.4 million this year.

Personal emoluments, which include salaries, pensions, and NIS contributions, moved from $51.2 million to $59.3 million this year, while goods and services, which involves maintenance and material went up from $21.38 million to $28.1 million.

Transfers and subsidies, which cover contributions to regional and international organizations and public assistance payments and subsidies of one kind or the other, moved from $21.7 million to $26.8 million.

Dr Gonsalves explained that the capital expenditure this year of $18.5 million for the first four months is less than last year, because of the Arnos Vale Sporting Complex project, which incurred a lot of expenditure, and was being completed for the 2007 Cricket World Cup.

The current account balance stands at $16.8 million or up by 178 per cent over the $6.04 million figure for last year, while the overall balance is $22.5 million, up from $9.58 million last year.