| There seems to be some need for explanation as to whether or not the 2012 Budget will have to rely on a set of new taxes to help raise the revenue necessary to offset the estimated expenditure of some 188 million dollars. The Chief Minister and Minister of Finance, the Hon. Hubert Hughes, has categorically stressed that there will not be any such taxation. |
| He made the assertion as recently as Tuesday, this week, in a well-balanced interview conducted by Keith Stone Greaves of Radio Anguilla, who asked: “Mr. Chief Minister, the Budget is coming up: will there be any new taxes?” To that, Mr. Hughes replied: “There will be no new taxes as far as I am concerned.” While this may be good news to the populace, at face value, one wonders how this can be possible in reality, given the difficulties facing the island’s public finances which, in recent times, led to a huge budgetary deficit, cuts in the salaries of civil servants and various taxes. Even at present the 2011 budget is being financed by a number of taxation measures, and the outlook for the financial situation next year is showing little improvement. One reason to question the possibility of a tax-free 2012 budget (although this would be most welcome), was the report from the Anguilla delegation at the OTCC meeting in London about Minister Alan Duncan demanding from the Chief Minister what taxation would be attached to the budget. The CM is reported to have argued, as he has always done, that no further taxes were possible. In an attempt to ascertain the true situation, The Anguillian found it both necessary and compelling to research some of the most recent minutes of the Executive Council which were circulated to the media. The following is an extract from those minutes dated 31 October 2011. “Council agreed in principle to the following proposed new taxation measures for 2012, subject to the working out of details and the need for amendments to the necessary – 1. Banking Licence Fees – transferred from Financial Services Commission to GoA; 2. Training/Education Levy – a tax on employers who have workers on work permits at 3%. Council noted that the name of the Levy will be reconsidered as funds would go into the consolidated fund; 3. Withholding Tax – a tax levied on the incomes of specified workers such as consultants and contract workers and collected by the employer; 4. Communication Levy – increase by 3%; Council further agreed that the Restaurant Meals Levy and the Car Rental Levy should be deferred.” There has been no further communication from the Executive Council about these proposed measures. Certainly, there is a need for some explanation as to whether all or some of these measures have been shelved or whether, in fact, the people of Anguilla should look forward to some new taxes to support the 2012 budget. The Chief Minister and Minister of Finance has been repeatedly quoted as saying that the expenditure for next year is estimated at 188 million dollars. He has not given any figure for the estimated revenue; and it is not known whether the 14 million dollars from Viceroy, of which so much has been heard will, after all, be somehow applied to recurrent expenditure in 2012 thus eliminating a substantial part of the need to raise normal revenue. It is against that backdrop that our Anguillian people look forward, with great anticipation, to the presentation and debate of the 2012 Budget. |
