After viewing the GOA Press Conference on Monday, September 20, I felt it was necessary to clear the air specifically on the hot button issue of the GST. Let me state from the outset, and not wishing to be hypocritical, that I am opposed to the implementation of the GST Act at this time – as we continue to grapple with the pandemic and, to use the words of our late former CM Hughes, “you cannot tax a dead economy!” However, I’m not opposed to paying taxes (I’ve always paid and continue to pay my taxes when due), and readily accept that tax reform is needed as a means of ensuring that Government can meet the social and economic needs of its citizens in a sustainable manner.
The GST was to be implemented in a phased approach as follows:
Phase 1 – Introduction of Interim Goods Tax (IGT) following the reduction of Customs Duties on 1 October 2019.
Phase 2 – Repealing the Telecommunications Levy (15%), Accommodation Tax (12%), Entertainment Tax (10%) and the Environmental Levy (7%) with the Services element of the GST at a rate to be determined (TBD) as that was work in progress (WIP) at the time. Bear in mind we are talking about mid 2019 and, of course, before the pandemic in March 2020 – no longer business as usual but business unusual or the new normal! Be that as it may, the effective date was 1 January 2021.
Phase 3 – Full implementation of GST repealing IGT in the process and the effective date was 1 January 2023. The rate was TBD as this was WIP.
Now the necessary legislation was in DRAFT Form. The pandemic ushered in the opportunity to establish goods exempt from customs duties, and zero rated items to prevent price gouging. This list effectively had a dual purpose as it was also used as a template in drafting the GST legislation as it relates to exempt and zero rated items – and this is a standard feature of any GST or VAT legislation.
However, this administration is implementing GST in the height of the pandemic in one full swoop on July 1 2022 – 10 months away! Remember businesses have to be registered beginning 1 October 2021. Now various civic groups, such as the Concerned Citizens Group, Anguilla Christian Council, Anguilla Evangelical Association, Anguilla Chamber of Commerce & Industry, Anguilla Hotel & Tourism Association and the Leader of the Opposition and AUF Party Leader – not forgetting the various talk shows – have all registered their deep concern with the way the GST Bill was passed into law and their objections to the implementation of the Bill at this time when people are hurting: unemployment/underemployment in the wake of the pandemic. The tenor of this APM administration is that they remain resolute on implementing GST on 1 July 2022 and that this is A Change (from their campaign promise) That Can’t Wait!
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