Shortly after assuming office, following the general elections of June, 2020, the Anguilla United Progressive Movement (APM) Government held a public consultation to inform the people of the island about Anguilla’s dire financial situation.
It was revealed then that the public debt on the island, in terms of money owed to the Government’s Inland Revenue Department, was extremely high. The debt included outstanding sums owed to the Princess Alexandra Hospital by persons who had received treatment but had not paid their bills; Accommodation Tax and Property Tax. (In terms of Property Tax, the amount owed is 24 million dollars at present). It was the view of some commentators, as well as Government officials, that every effort should be made to collect those outstanding sums. It was also expressed that the downside of failing to pay those monies, or any other large local public debt owed, could result in unnecessary taxation.
Just how is that debt situation now? Premier and Minister of Finance, Dr. Ellis Lorenzo Webster, gave the answer at the Government’s Press Conference on Monday, July 12, 2021. To be upfront, he said the Government was owed over fifty million dollars, resulting in a budgetary shortfall.
“We still have arrears – that is over fifty million dollars owed to Government,” the Premier told the media. “The Inland Revenue Department has reached out to businesses and individuals, setting up payment plans – trying to make a dent in those arrears in terms of Property Tax, etc. A Property Tax bill should be going out to persons and businesses with a discount if they paid by the first of September.”
Commenting later on other financial matters, Premier Webster said: “The Government of Anguilla’s recurrent revenue is 36 million dollars below what we projected we would have collected by the end of June – I think by the end of May. We are certainly in a position where we have to start looking, as the economy opens up, that this should bring in much-needed funds through Accommodation Tax and some of the spin-offs from some of the tourism-oriented businesses which are able to raise monies.”
He added: “This is the position that we are in. Certainly, it is not bright and sunny, but we have been able to keep it [the financial situation] steady. We hope, as we go forward, that we can update you as to how things are moving along.”
The Premier did not say so but, as reported earlier, some persons have suggested that if the Anguillian public were to be diligent in paying their taxes and fees, the result could be lower levels of taxation.
