Fortunately, here in Anguilla, few if anyone plays the shell game, even during carnival. For the unfamiliar, it is often a street game attributed to charlatans wanting to entice the unsuspecting to bet on guessing the location of a pebble, pea or small ball dropped under one of three cups that are swiftly slid to and fro. The game can entertain – or perpetrate a scam when the ball is deftly removed and replaced during play. Believed to originally use shells instead of cups, the game dates back to ancient Greece. It was later seen in English literature using thimbles instead of shells. The English combined “thimbles” with “rig” (rigged game?) and called it Thimblerig.1
As with Gaming Tax, Taxpayers are Gamed!
Many have been quite concerned after seeing “Gaming Revenue Tax” appear like the pea under the last cup in this game. Last year’s budget promised millions from such tax by 2024 – in addition to over $3 Million lifted from the most vulnerable households’ losses already lost to the Lottery. No discussion, no consultation. They plan to risk our reputation, tourism and more to rake in over $4 Million. They are touting “more jobs” as if the People of Anguilla want to be card dealers and roulette and craps table bosses, paid to watch people lose.2
And… GST is a Shell Game Played on the Taxpayers
At the public consultations early that year, before undemocratically passing the Goods and Services Tax Act, 2021, the “ball” under their cups was $22 Million. That was the incremental revenue they said the Government demanded in exchange for our civil rights, upending our economy and pushing people into poverty, once subjected to GST.
Watch closely, now. Soon there were 5 shells zipping from left to right across the budget – all making us guess which might reveal $22 Million per year: Accommodations? Communications? Entertainment? Environmental – or Interim Goods taxes? Then, poof! From cups to a bucket, Goods and Services Tax hid them all!
GST Shell Game Rules: What’s in, What’s out?
What happened, after all? With various offsets, the totals for trade and services taxes give an overview for comparison year to year: For 2021, “Goods and Services” taxes included IGT, as well as Stamp, Lottery, Environmental, Excise, the AUTO Levy, Accommodation, Tourism Marketing, Communication, the Medical School and Student Levy – and 17 types of licenses, permits, and fees. Those spanned annual business, vehicles, ANGLEC, phones, even our yearly driving and dog licenses.2
Given GST trade-offs in trade and duties, a comparison must also include “International Trade and Transactions”: These encompass Customs Service Fees, and duties on Alcohol, Fuel and Gas, duties on “Other!” (in addition to GST) – plus Offshore Fishing licenses and Money Transfer levies.
With the exception of Stamp Tax, incurred only when property is sold, these annual accounts enable us to see if that $22 Million of additional annual tax would be collected, or $11 for only that first 6 months.
Under the Goods/Services and International Trade Shells…
In 2021, taxes for “Goods and Services” and “International Trade and Transactions” (less Stamp Tax) totaled $139 Million (i.e., $138,808,083).
So, by implementing GST for one-half year on July 1st, 2022, the People expected these burdens to increase by $11 Million in GST (or 6 months of $22 Million per year). That would mean a total of about $150 Million from the People ($139 + 11 = $150) for “Goods and Services” and “International Trade and Transactions” (less Stamp Tax), combined. But…
Instead of $11 Million as expected in 6 months, they took over $60 Million of incremental tax on goods/services and international trade in 2022.2
How so? They collected $200 Million (i.e., $199,440,050) versus $139 Million in 2021 on the overall trade of goods and services.
Empty Shells: Empty Suites, Shelves and Streets!
Many were already feeling the pinch every day after the AUF broke its 2015 tax relief promise. They pushed the tax burden past $16 Million, up to $19 Million per month in their last term. You know. Up from about $65 Million a year long before they began many years of spending, increasing taxes all the way to $224 Million per year for expenses, alone. Excluding capital for roads or schools and such.
So, Anguilla was “expensive” before the APM came along, promising to “curb spending” and adopt alternatives to GST. In fact, by the end of ’22, this government pulled in tens of millions more than they told us they needed, some $336 Million, or $287 without Stamp Tax, up from the AUF $224 Million in 2019. Wow!
We know Festive stats will take a while, but most every hotel offered empty suites throughout that week. Even those who can afford everything don’t want to overpay for anything. On Separation Day, the only empty shelves were across the way in Sint Maarten shops – where fewer bought gifts than affordable food, which they needed more than ever before. And the streets looked like Sunday most of the month, with but a few more souls on the very last days.
To Win this Game, Our Beliefs Must Change!
Indeed, the GST shell game seems poised to leave empty shells where bustling businesses and happy homeowners once stood. So, how many more millions will we be forced to pay – before we all believe – it’s time for the government to cut their costs and our taxes?
How long before GST turns tourists away – before we all believe GST must be repealed to win them back – and lead the region again? And how long before the last business hands over their last dollar in GST, lets the last employee go, and closes for good – before we believe in our common good? Don’t we all deserve to feed our families, keep our homes, cars, children in school – and realise our shared dreams? …not only those in government?
To win this shell game: We must all believe – and demand – that reasoned leaders can and will repeal GST, balance the budget, and fulfill the promise for a new way forward with the British and the banks.
Repeal GST. Now.
This article reflects cultural and economic issues raised on July 5, 2021, at the House Select Committee on GST Public Hearing. 1https://en.wikipedia.org/wiki/Shell_game; 2Government of Anguilla 2023 Budget. pp. 2-6.
