A Taxing Task

A year and a half after Hurricane Beryl, there is no revenue office where residents of Union Island can pay their taxes. After so many years, there is no registry where residents can obtain birth papers. Some residents claim that in the past when taxes were paid, they were not reflected in the books on mainland in a timely manner.

Mega projects such as the airport, Acute Referral Hospital, and new Kingstown port apparently are not financially self-sustaining. They require a continuous injection of money to keep them going. These monies come from taxes. According to some officials, some of the most successful professionals such as lawyers and doctors hardly pay any taxes. Many persons with group insurance do not pay for hospital services. Liquor shops open later hours and should be required to pay for the appropriate higher-class license.

At a time when the budget should be prepared, many workers are busy campaigning. The hook in our economic gill will only be removed by greater productivity. Large expenditures in mega projects that are not economically viable must be designed to benefit the country in other ways, such as generating large local employment. The financial and material increase that people gain from this election should not be wasted but translated into long term benefits. Measures must be put in place so that appliances received now are not repossessed after the elections as occurred in the past.

It appears that the VAT is an important tax source. Our focus should be on employment generation. When people work, they are empowered to supply their own needs. Poor relief seems to be a major means of supporting needy families, but the greatest need for the poor is employment. When people work, their pension contributions must be collected to provide for their retirement needs.

The tax department should report regularly to the public on the average amount of taxes paid by each category of workers.

Tax evasion and tax avoidance are most common among those who are rich and do not want to pay their fair share to the country’s economy. Integrity legislation aims to help capture some tax evaders.

Corruption and crime cost taxpayers, and the poor is robbed from the denial of some essential service as a result.

Anthony G. Stewart, PhD