“I would like to comment on the recent discussion of GST on Kool FM. In particular, describing GST as the most ‘predictable’ tax in Anguilla’s history. In fact, it may be the most corrosive tax ever, for both the Government and the People, unless it’s repealed. Why?
“GST poses a serious risk of lost tourism that would cascade throughout the economy; whereby, even the most affluent people this country has aspired to welcome in its luxury destination marketing – even they expect value for money. Far beyond the countless uncertainties, crushing penalties and cultural atrocities in this legislation, the proposition that everything in Anguilla will now be 13% more expensive is a grim economic specter. As such, GST poses unpredictable risks ultimately, to the Government, from businesses going out of business, no longer able to pay GST – or any other taxes – because, unlike the Government, businesses cannot force their customers to give them money.
“Trade from customers who cannot afford to pay cash will cease, as credit lines are cut. People who cannot afford 13% more will only be able to buy 13% less. And how many businesses can afford to give up 13% of what [business] they have now?
“Too many are still recovering from the last vestiges of Irma – and only now finding the way forward, as the pandemic eases despite continued vigilance. These are immediate risks. The longer-term threats are lost jobs, whether from lost business or firing, so as to pay for accountants and systems that none of our current taxes require. Fewer staff serving customers impacts service quality, and the cascade follows further lost income for all businesses; where, people who have lost their jobs can no longer spend the money they would have had in a thriving Anguilla.
“That said, it is also particularly strange to ask, if these opinions in support of GST were held for so long by an advisor to the APM in the past, then how was such support hidden from the voters in the last election? Whereas the APM was elected largely because of its position against GST, convincing so many they would negotiate an alternative with Great Britain?
“I also note the comments around medical treatment uncertainties. The Health Authority has had perfectly predictable subventions – and they have had no qualms about raising healthcare fees. Yet, how is it we don’t know what that might require? In the 2022 budget, out of $224 million of estimated expense, $544 thousand falls under ‘Medical Treatment’; not 1%, not a half a percent of the budget. It is remarkable that any expense of less than 1% would be used to justify GST.
“Nonetheless, one appreciates Brother Lee’s question about supporting the development of our People. Yes, always a good question; but we must look very carefully at the fact that there are 39 departments now in this Government, all vying for travel, for training and conferences, allowances, raises, government vehicles, computers, expense money for supplies to run their offices, utilities for more air conditioning, for more, larger offices, more office furniture, rental of heavy equipment, and on it goes. If there is not enough money in the Education budget, we need to ask our leaders and our governments, past and present, why?
“What were their priorities among 38 and now 39 departments all spending over $224 million a year, or nearly $19 million a month? GST is by no means a transformative model for the future – nor would any other tax correct the course of a government more interested in perks and travel and cars and consultants than our students. Where there are shortfalls, misplaced priorities, not a lack of tax revenues, account for any failures to invest in our People.
“And… Let no one propose that Anguillians are living tax free – or unwilling to accept that any civil society depends on them. We all know that. We already, however, contribute to over 130 taxes, levies, fines, and fees. They also have a budget for the penalties they anticipate taking from us. As for predictability, 25 of their revenue streams are well over a million dollars a year. And if you think they are unpredictable, you don’t know Anguilla and you have never lived here. People have succumbed to the Levy and its penalties, approaching $16 million a year. Property tax at $7 [million]; Interim Goods Tax, already at $17 million; Accommodation tax at $14, and soon to disappear into the orb of GST. Driver’s Licenses, almost $2 million; Car Registration, almost $8: Is that not ‘predictable’? Are we going to stop registering our cars and driving? Over $4 million as a Bank Levy – how much of those service charges reliably go to the Government beyond our control? Two point nine ($2.9) for Business Licenses? We’re forced to have them. Customs Surcharge, nearly $4 million – or you don’t get your goods; and on top of tens of millions of projected GST, duties are still some $34 million. Fuel duties, nearly seven [$ million], alcohol duty, $2.8. Are these unpredictable? We need those things to serve the guests who visit us. We can’t just all have a temperance movement. No, we must provide those things to keep our guests happy and to keep them coming back. The Government is leasing property for some $3.9 million; Company Fees, $9 million; and Domain Registrations, surely much of which comes from offshore, is nearly $19 million, alone. Domain Registrations. That’s right. There’s a month of running the entire Government.
“And while I could list many others, they have sold us out, notably, to have GST for about the cost of running the country for one month. Maybe we need to ask half the Government to go home in September and October, as the rest of the private sector does, [and] to provide only essential services. Given suffocating inflation, tighten their belt, cut just 10% from the budget – which happens to be $22 million [the amount used to ‘justify’ GST]. And please repeal GST immediately!
“It can be done, and it can be done through numerous budget alternatives, without a layoff and – without the ‘hands on cheeks crying’ that everyone [in the Public Service] would default on their loans and crash the banks thereafter. If the private sector can keep on going through those lean months every year, surely the Government could share the sacrifice with the People, who are forced under penalty to pay their salaries 52 weeks of the year, on the back of a fragile, 44 week economy.”
(These comments were first shared on social media on May 21, 2022, in response to an interview conducted on May 20, 2022, by Brother Lee on Kool FM with Mr. Quincy Gumbs. They also reflect updated concerns and 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.)
