SVG Budget Increased Tax Burden To Fund Investment: IMF
by Mike Godfrey, Lowtax.net, Washington
09 March, 2016
The 2016 Budget of Caribbean territory Saint Vincent and the Grenadines will have a negligible impact on its fiscal position, according to the International Monetary Fund (IMF).
Tax-revenue increasing measures are expected to yield revenues worth 0.7 percent of gross domestic product. These include measures to broaden the value-added tax base and raise excise duties on alcoholic and sweet beverages. The Budget also hikes the automobile surcharge and drivers' license fees.
However, these gains will be offset by higher spending on public sector wages and investment in energy infrastructure.
The IMF said that in order to build a buffer for if there is a natural disaster, SVG should seek to "mobilize additional revenue by further broadening the tax base, including by streamlining ad-hoc tax concessions and other tax incentives, and intensifying collection of tax arrears."
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