From our first collaboration last year, while seeking alternatives to GST, to today, this message reflects further discussions with, and on behalf of, the Concerned Citizens of Anguilla.
There are three straightforward options to meet the demand to fill the $22 million annual ‘gap’ on which GST was justified. Each could serve as the basis to repeal GST immediately, never to be brought back to the Honourable House in any form, no matter the strength of the economy or, God forbid, recovering from challenges, where devastating, generational burdens are ever again cloaked as aid or gifts.
As this Government has insisted on spending more, while the rest of Anguillians and the world have lost so much purchasing power to pandemic and wartime pressures throughout the supply chain, the first option is to delay spending increases by 10 percent of the $226,000,000 Recurrent Budget. And, as we have always asserted, this could be done without laying off civil servants. As with any household needing to economise, this could be done by foregoing various increases planned from this tax.
And in such inflationary times, where our businesses have already stretched to pay basic bills and serve their customers, and with so many prices, taxes and fees already much higher, this option would share the sacrifice between the public and private sectors.
If, however, this Government is not capable of spending 10 percent less, a distant, second option would be to reduce its spending by 5 [percent], while increasing the Levy by 5; thus sharing an offset of 5 percent, each from the public and private sector.
That said, if that modest spending offset is yet too elusive, a third alternative would nonetheless be more merciful than the culturally demeaning oppression embedded in the Goods and Services Tax Act. In fact, it is notable and somewhat alarming that the Public Assistance budget was allocated $11 million in 2021 and then reduced by $6 million in 2022.
Those funds appear to have been absorbed into 39 departments, enjoying raises, more supplies and materials, training, travel, pension contributions, healthcare, vacations, access to cars, most with comfortable, air-conditioned offices, and all with year-round employment, in a seasonal economy for everyone else.
This third option reflects a spending reduction of 3 percent, by giving that $6 million back to the People, actually, slightly less than 3 percent of Government spending, overall. That would be 6 million [dollars] toward the ‘gap’. Adding 6 percent to the Levy would then deliver the balance of 22 million [dollars] that was used to justify this intrusive law.
While a government spending reduction of 10 percent is now morally justified to compensate the People for the traumatic impacts already suffered under this culturally atrocious legislation, why suggest the Levy as a sacrifice to repeal GST?
The Levy was transparently used in the past to fill a gap, and increasing the Levy would mercifully affect only those with jobs and who earn more than 2000 EC [dollars] per month. True, it would impact their purchasing power by 5 to 6 percent, but not 13 [percent]! Painful, yes, but far less than GST!
Most importantly, those struggling to feed their families and earning less than $2,000 a month – and those who are unemployed at the moment – would ALL be spared the loss of 13 percent of everything they have: from the amount, or quality, of the food on their table, to their car insurance, to being 13 percent short on the rent and their loans and bills, to merely buying a bottle of water on a hot day.
And by repealing GST, our nation of entrepreneurs could also be spared forced compliance with changing regulations every time the House meets; of being ordered to deceive customers to hide the excesses of an unsustainable government; of monitoring receipts and credit card fees, with tax on top of tax – and tracking every item ever bought or sold, wasted, or given away in a culture of sharing: all with seven years of recordkeeping, under threat of criminalisation and extreme penalties… and fear of assessments that demand payment, just to question them; and the risk of lost freedom at the border from a capricious comptroller at any point in time.
These alternatives to GST would also alleviate the fear of police coming to confiscate computers and the humiliation of having to bow to the Government every month, to pay them for our service to our patrons, while revealing every aspect of our business, and that of our customers, in a culture where Privacy still matters and where confidentiality is not protected; much less, be subjected to the Comptroller calling us in under oath against ourselves or ‘any other’ person.
GST must be repealed. Now.
And please stop the distractions about being able to ‘claim back’ a few cents on the supplies to be sold or needed to conduct our business – or what is ‘exempt’ or not, making us all ask about sugar in our bread or where an egg or chicken was produced. We are reminded: Not a cent of Customs duty, nor a cent of the Surcharge, nor any other taxes, fees, fines or levies, with but a few renamed, and those, only to silence our hotels and communications leadership, none has been removed, or would be – even prescriptions remain at 21%, without GST. That said, the task of removing IGT would remain.
In fact, nothing can be done to make GST a culturally acceptable nor reasonable option in a nation of importation and entrepreneurs. It’s an insult to the intelligence of every man, woman and child on this island – and, any change to hush one cry or another is inherently at risk of being withdrawn without consultation, just as the rate could go higher, the threshold lower, penalties more severe, and the endless corruption of shifting exemptions to favour one group or another, could continue within the framework of this tyranny as long as it remains the law of our land.
Remarkably, with over 130 taxes, fees, levies and fines, and 25 well into the millions, our society at large has never refused, or believed, we have a God-given right not to pay tax. Do some pay more than others? Yes, but all pay duties and fees without favour. And, while Life is not always fair, it’s not a universal issue and should not be treated as such.
To summarise: Any of these alternatives would provide $22 million per year, as demanded to justify this tax – a 10 percent spending reduction; or 5 percent offsets from the budget and the Levy; or failing that, to add 6 [percent] to the Levy and cut 3 [percent] from spending, to repeal GST.
And, once repealed, we must establish a legislative framework to balance the budget for an affordable, dignified government, the People of Anguilla – and the civil servants deserve. Sharing the joy of growing the country, one entrepreneurial dream and career at a time; supporting a sustainable, mutually respectful and efficient Public Service; educating our children and keeping people safe. Only by adopting one of these measures, by repealing GST, and by balancing our budget, can we all realise our shared vision for the future – with Anguilla, proud, strong, and free!
This discussion was first shared on social media on June 6, 2022, in collaboration with the Concerned Citizens of Anguilla and based on feedback from businesses and citizens from across the community. They also reflect updated and expanded recommendations previously presented in the Anguilla House of Assembly on July 5, 2021, by Ms. Melinda Goddard, Principal of ClienTell Consulting, in her presentation to the Select Committee on (GST) Goods and Service Tax Public Hearing.
