During the last four administrations, the government of Anguilla has taxed the people ever more, from about $5 million to $10 million, to now approaching $20 million every month, exceeding $225 [million] per year, while borrowing more and destabilising our economic wellbeing.
What person, household or business do you know whose salary or sales have risen from, say, $5 to $20 thousand per month since Osbourne Fleming was Chief Minister? What business do you know that could deliver $5 thousand worth of services and charge $20,000 while threatening its customers into court if they objected to such practices, from then to now – and survive?
Our government has thrived despite our fragile seasonal economy, ensuring year-round salaries with travel, training, vacation, pensions, access to cars, air-conditioned offices, and health insurance for some, while taking from far too many, with none of these. How is it, the same work to serve the same population can’t be done for, say, $15 million per month, as it was for $5 and $10, and yet now demanding $20 [million], in addition to another $22 million more in taxes per year – before this latest crush of inflation?
During this time, tourism, the heart of the economy, has floundered along a nearly flat line, diving after Irma and crashing during Covid, only to rebound briefly before global inflation is threatening yet another travel downturn, as just reported in The Washington Post. And now, the threat of GST to tourism?
In short, not another penny, nor any other new tax, is justified. GST should be repealed on the moral ground that the government has proven itself incapable of controlling its costs and delivering services in a sustainable manner. Moreover, while the budget doubled, and doubled again, while allowing even more borrowing, never insisting on cost management along the way, our governors, absent meaningful oversight for good governance, signed off on each of these unsustainable budgets, year after year. Now, they are “blamed” for forcing Ministers to betray election promises, while feigning innocence for standing by while this doomed ship of GST was built.
As for recent assertions that they lack “room for cuts” and would require “quantum” increases in taxes to meet government needs, the manner in which this government is refusing to share any sacrifice, whatsoever, for all of us to navigate these extremely rough waters is – simply shocking.
So as this storm approaches, it is nonetheless humiliating to see how we are all being forced to chase conflicting issues of survival: from imploring the Comptroller to “allow” pricing on menus to avoid deception of patrons – but only for three months? We see others distracted by promises of “claiming back” what is taken, lost between lists of exempt and zero-rated goods, but only if lured into the trap of registration, and all that that entails. GST has pitted one sector against another, treating inventory one way, or taxing only services or sales another, leaving the sinking ship to drift with us all deep in its hull of oppression and arguing over how much, and what, to allow GST to take from us; hoping only not to drown in its sea of penalties and monthly reporting of every cent we hope to earn, or spend, or save!
As such, GST should be repealed because it is socially destructive. Exempting ground transportation kept the taxi drivers quiet. Adding, “only 1%” to accommodations kept the hoteliers at bay, not to mention their uncertainties with work permits – and yet terrified of the impact for those with restaurants. They kept communications leaders quiet with a similar tack for their customer taxes. And no one knows where ANGLEC will end up after inflation and GST! Even the suggestion of shared offsets, to let the People benefit from cuts to Public Assistance, while increasing the Levy, are compromises: merely a lifeline to the most vulnerable, from those earning more. And now sales, service and inventory issues are putting retailers and restaurateurs into crosscurrents, all just hoping not to drown.
Clearly, GST is forcing the private sector to row – day and night – so civil servants can bask on deck and enjoy the breeze. That is socially destructive.
And the cruelties of the law remain, cited again and again: giving of evidence under oath; paying half of disputed amounts, only for the right to question them; forcing fishermen and farmers to register, only to save a fraction of import costs on what they need to make a living; forcing restaurants to account for GST – on food given to their staff – and demand they use deceptive pricing; routine audits with authority to take computers indefinitely; lost freedom to travel, at the Comptroller’s will; assessments at his satisfaction; in addition to hours of paperwork to actually claim some 3% of the 13% collected on total sales and services for most businesses, which is about what they absorb to accept credit cards!
Once a few of the most destructive aspects of GST have been calmed with patronising “allowances” and deft “negotiations” – no matter the impact on others, we are reminded by the Goods and Services Tax Act 2021, Section 100 (1b), that, “[The Minister may make regulations], whether or not to be prescribed by regulations under this Act, for any matters necessary or convenient to be prescribed for the better carrying out of giving effect to this Act, including revisions to the Schedules, hereto”. This means, no matter what exceptions or exemptions are granted, the Ministers can reverse any such changes, regulations or amounts to serve this unsustainable, bloated government budget at any meeting of the Honourable House, at any time, with the full force of the civil and criminal penalties embedded in the rotten wood of this law, and without public consultation.
And if anyone is inclined to dismiss the potential ravages from this careening vessel of GST as it crashes our society and economy against one reef after another, we need look no further than a sister ship of laws that seeks to drown us all, every day: the Customs Act, spanning 97 pages, with another 20 acts and regulations that now flood 779 pages. They control every imported morsel of food, inch of clothing, appliance, car, electronics, medicine, the passage of air and sea craft, our freedom of movement with purchased goods; and every aspect of our lives that crosses our borders – are documented, monitored, and subjected to surcharges, duties, and excise taxes, and most recently, the Interim Goods Tax.
Be assured that the powers Customs lords over our goods and passage are only a taste of lost freedom and dignity as we have known it. GST gives such powers to the Comptroller to lord over our lives and livelihoods. In just 87 pages of the act, and 26 from the first storm of regulations, we are reminded: Not one of our existing taxes requires the oppression of GST, not even those from Customs.
Only by adopting one of the recently proposed cuts and offsets, by repealing GST – now, 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 20th June 2022, cites recent Concerned Citizens’ proposals, and reflects updated and expanded cultural considerations and inequities previously raised in the Anguilla House of Assembly on July 5, 2021, by Ms. Melinda Goddard, Principal of ClienTell Consulting, in a presentation to the Select Committee on (GST) Goods and Service Tax Public Hearing.
*”Americans are starting to pull back on travel and restaurants,” Abha Bhattarai, The Washington Post, June 18, 2022: https://www.washingtonpost.com/business/2022/06/18/consumer-spending-slowing-economy/
