INLAND REVENUE COMPTROLLER OUTLINES CURRENT REVENUE AND EXPENDITURE

anguillian
By anguillian September 14, 2012 08:49

INLAND REVENUE COMPTROLLER OUTLINES CURRENT REVENUE AND EXPENDITURE

 

Comptroller Gecheal Richardson

On Monday, September 10, at the public economic and fiscal forum, Comptroller of Inland Revenue inAnguilla, Gecheal Richardson, outlined the performance to date of the 2012 fiscal targets and the end of year projections.

“In the fiscal targets for 2012, the revenue budget is slated at 189.6 million dollars [in round figures]; the expenditure budget is 185.5 million and the capital budget is 28.2 million…” she reported.

 

“For the 2012 budget, there were several revenue-enhancement measures that were proposed. We have a Withholding Tax and a Training Education Levy, and Intellectual Property Rights that were to be put in place by the second quarter of 2012. We also introduced the Banking Licence which, when the Financial Service Commission came on board, the Government allowed them to have that as a revenue stream. But from January 2012 Government took it back because they were showing to be self-sufficient.Fifty per cent of the Embarkation Tax that was given to the Port Authority was re-introduced to the Government’s budget also in 2012.

 

“The  Communications Levy was increased by a further 3%, from 7 – 10%; and there were increases in drivers’ licences and revision of the class types.”

 

Ms. Richardson presented a brief overview of the island’s public sector revenue performance as at the end of August. “I wish to say that 2012 continues to be a challenge for revenue collections,” she commented. “At the end of August 2012, revenue collections were 117.8 million or 62% of the budget. Projections for this period were estimated at 131.2 million or 69% of the budget; expenditure, on the other hand, is performing below projected targets.”

 

She listed a number of revenue accounts as follows: “The budget, mainly, for Property Tax is 3.7 million. To date we have collected 2.7 million and our end of year projections are 4.5 million. Taxes on income (made up of the infamous Interim Stabilisation Levy and including the Withholding Tax and the Training Education Levy which are not yet implemented) amount to a budget of 12.9 million. The Revenue of 9.6 million collected to date is solely from the Interim Stabilisation Levy and we are projecting 14.9 million for the year from that revenue stream.

 

“Taxes on Domestic Goods and Services (including the Accommodation Tax, Communication Levy, Stamp Duties) amount to a revenue budget of 52.9 million. Collections to date total 34.3 million and we are projecting for 52.8 million at year end, slightly under what we have budgeted for in that grouping.

“The other revenue group are Taxes on International Trade and Customs Duties which we have budgeted at 76.9 million, with revenue collections to date at 45.8 million and the end of year projection is 71.7 million.

 

“As you can see, we are really struggling in that group, with Customs Duties way under especially in Import Duties Other. We are doing fairly well in terms of the fuel and gas, alcohol and customs surcharge. You may probably wonder why the Customs Surcharge is doing so[well] while Import Duty Other, is struggling. One reason for that is that there are a lot of zero-rated items on which the Customs Surcharge of 6% is still to be paid. It means that persons will definitely bring in more zero-rated items than those which would attract Customs Duties.

 

“For licences, the revenue budget is 13.4 million. To date we have collected 10.1 million and our end of year projection is 12.8 million.

“The total from tax revenue is a budget of 159.6 million. Revenue collected to date is 102. 6 million; and end of year projections amount to 157.1 million. It shows that tax revenue will come in slightly under what has been budgeted for.”

 

The Comptroller also gave figures for non-tax revenue made up of fees, fines and permits which amount to a budget of 18.3 million with 11 million collected to date. The projection for the end of the year is 15.7 million of what was budgeted for.

Under the budget of 4.7 million for Rents, Interest and Dividends, only 1.2 million has been collected to date. The projection for the year is well below 1.7 million. Ms Richardson explained that the reason for the low collections was that this was the group of revenue sources which included the Maundays Bay/Cap Juluca land leases but for which there was a delay in revenue collections. This is due to the current ownership situation of the property there.

Other revenue heads amount to 6.8 million of which 2.8 million has been collected and there is a year-end projection of 4.2 million.

 

The Comptroller of Inland Revenue concluded that, overall, revenue collection was struggling, with the end of year projection at 179.8 million. “So we are basically at a 9 or roughly 10 million-dollar deficit thus far,” she observed.

She said that, in terms of recurrent expenditure, the enhancement measures included the continued salary deductions, a restriction on the hiring of new employees except in critical situations; a restriction on overseas travel; and the redeployment of officers where necessary.

 

Mrs Richardson went on: “Overall, we have spent over 112.5 million to date, and we are projecting that we would spend 167.1 million…We have capital projected at 28.2 million. To date, we have only spent 5.3 million because currently capital is being financed out of recurrent revenue…We are projecting that our end of the year spending will be 9.5 million.

“To take that into context, we would have an overall recurrent expenditure and capital of 176.7 million. Earlier, you would recall that I said our end of the year projections for revenue would come in at 179.8. Thatbeing the case, we can still end up with a slight recurrent surplus of just over three million, give or take.”

 

 

anguillian
By anguillian September 14, 2012 08:49

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