St Vincent And The Grenadines Needs Broader Tax Base: IMF
by Mike Godfrey, Lowtax.net, Washington
21 July, 2016
The International Monetary Fund (IMF) has outlined a number of measures that St Vincent and the Grenadines could adopt to broaden the tax base.
In its 2016 Article IV consultation report for the Caribbean territory, the IMF encouraged the Government to streamline ad hoc tax concessions and other tax incentives. The overall revenue foregone from all customs concessions is estimated at 4.8 percent of GDP, and the revenue loss from all tax incentives is estimated to be near seven percent of GDP, the report said.
In addition, the report said that reforms in revenue administration need to be accelerated and sustained. The issuance of a single Tax Identification Number per taxpayer must be finalized without delay, and the upgrading of information technology needs to continue, it said.
The report noted that the country's 2016 budget provides for additional revenue measures that broaden the tax base. The tax measures include a broadening of the value-added tax (VAT) base, and increases in excise duties, property taxes, and fees related to motor vehicles. The IMF said it forecasts that these measures will yield 0.5 percent of GDP in 2016, and 0.7 percent of GDP in 2017 and over the medium-term.
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