Despite four public hearings, initiated by protests letters from a group of Concerned Citizens, and a set of diverse views, most of them expressing caution and concern, the Goods and Services (GST) Tax will be taken to the House of Assembly shortly for passage.
Premier and Minister of Finance, Dr. Ellis Lorenzo Webster, said at the Government’s Press Conference on Monday, July 12, that the GST Bill is to be tabled before the House of Assembly later this month for its second and third readings.
The Premier made the point that there will also be a report to the House by the GST Select Committee on the public consultations which had taken place – and the views expressed by various persons. This is in line with the request of the Speaker of the House, Mrs. Barbara Webster-Bourne, when the Bill was given its first reading on March 23, 2021. It was also on that date when members of the Concerned Citizens staged a peaceful protest in the House to request the withdrawal of the draft legislation, thereby wanting no mention of its first reading. That reading however took place.
With regard to the consultations on the GST Bill, Premier Webster told the media, as well as radio and online listeners: “We certainly listened to the four sessions of the consultations. We want to thank everyone who participated, including Ms. Melinda Goddard for her presentation. The Select Committee is writing a report which will be tabled in the House. We certainly will be guided by the recommendations… and every day when someone has suggestions and ideas, we do listen. And that is what has guided some of the exemptions that we have proposed as amendments to the current draft [Bill], and also the zero-rated items.”
Premier Webster took the opportunity to officially disclose how much the Goods and Services Tax will cost the people of Anguilla. “Based on the data that was sent to the IMF, they have now given us their recommendations,” he stated. “They gave us different scenarios which showed different rates and thresholds based on the [revenue] target, and on the exemptions and zero-rated items that we wanted to put in place. We certainly wanted to make sure that basic food items were not GST-rated.
“We also wanted to make sure that such services, like health and education, and certain insurances, did not come under the GST rate. We also wanted to exempt certain industries like fishing, farming and manufacturing. Those [exemptions] changed the scenarios based on the projections from the IMF. At this point in time, the rate we are looking at is 13 percent – and the threshold for persons or businesses that bring in three hundred thousand dollars, or more annually, is three hundred thousand East Caribbean dollars.” The GST targeted revenue is 79.4 million dollars annually.
The Premier also addressed one of the burning concerns of the public in relation to price control: the fear that businesses would pass down the Goods and Services Tax to consumers.
“There is price-gouging legislation already written,” he assured listeners. “One of the things, we have already tasked the Attorney General’s Chambers with, is to draft legislation for consumer protection which will include price control and enforcement. We know that businesses are able to claim back the GST that would be paid as part of the duties, and so we are expecting that the tax would not be passed on. It will be monitored so that we can control prices for the people of Anguilla.”
