Happy Emancipation Day, mostly. As we consider the reasons for celebration on August 1, it is both a joyous day ? and a solemn time for reflection. Indeed, whether marked on this date or as August Monday, it is a haunting observance of the abolition of acts that never should have been. [1]
Mostly? The British Empire abolished what had been legal bondage on 1 August 1833, but the Act “came into force the following year, on 1 August 1834.” And after waiting a year, “people older than six years of age were re-designated as ‘apprentices’ and required to work 40 hours per week without pay, as part of compensation payment to their former owners. Full emancipation was finally achieved at midnight on 31 July 1838.”[1] Yes, mostly.
Fiscal Fetters
For the last five years, the nation looked on while government growth and projects were prioritised over the People and our social fabric. After being elected on promises to “curb” it, the last administration increased spending again and again. Ultimately, they were taxing tens of millions more than they demanded from GST. Just for salaries and expenses. All that concrete added more to our fiscal bondage ? after they betrayed another promise for alternatives to that culturally atrocious tax.
Thus, tax inflation and social instability were inflicted by the last government while global prices were soaring, along with our port fees. GST compounded the cruelty of countless other taxes, levies, and fees, and impoverished more among us than only dignity could deny.
Putting People First
How so? All could see empty carts in the grocery aisles. Dozens of cars have been spilling across ferry parking lots ? with bedraggled shoppers lugging back suitcases of food bought under duress. And who can ignore others seen at one job at breakfast, at another at lunch, and at a third serving guests at dinner? Food, clothing, housewares, building and auto supplies… all goods have become increasingly unaffordable for everyone. Many had to choose between food and fuel just to keep working.
Our new leaders saw all these things, too. They presented a GST relief plan focused on our most vulnerable to ease up to 13% of the damage it caused.[2] For some, lower taxes could allow survival on fewer hours of work. Up to 4 days off a month – 13% of 30 days – could mean more time with their families, a few more items in the cart and fewer empty refrigerators. And increasing disposable income will accelerate the velocity of money, whereby “The velocity of money is typically higher in expanding economies and lower in contracting economies.” [3]
Freedom for Fetes
And… Just in time for August festivities, our new leaders freed promoters from the Goods and Services Tax Act of 2021! [4] Promoters include some of our most fiscally endangered entrepreneurs, often with only random opportunities to offer their services, sell tickets and market related wares.
This merciful amendment is facilitating our first unfettered fetes since 2021. How? One month before carnival in 2022, promoters were bullied into business licences, registration, security fees, pleading for written permission, outlays of prepaid taxes – and inclusive prices that masked the extortionate tax. Public entertainment carries endless uncertainties, from inclement weather to traffic congestion, to performers’ travel or health and venue conditions, to delayed deliveries of refreshments and tshirts, posing an array of risks without relief from tax demands. And ever since, promoters with small businesses otherwise not required to register remained under monthly threat of fines for failure to file, even when no taxes were due. Until now. As of July 14, promoters were freed to pay Customs to clear their goods and be on their way.[4]
Freeing Fragile Businesses
In fact, many faltering households also depend on struggling businesses. Too many have been fighting to retain jobs for their workers and keep enough cash to clear goods to earn their livelihoods, while driving up overdrafts to pay GST up front. Tracking GST payments through a tangle of accounting offsets then poses penalty perils at every step. Precious time and funds are required for bookkeepers, monthly filings in fear of fines, and to indulge intrusive audits.
As such, GST forces businesses to serve public servants instead of serving customers to grow. That impact is larger, the smaller the enterprise, where cash and staff to achieve compliance are hardest to come by. And freeing up more cash may allow some to do more business by stretching customers’ dollars between paydays with credit on accounts. You know, like before GST?
As with promoters, essential sectors have been freed to pay Customs to clear goods and go back to caring for customers. These include stores, bakeries and other manufacturers, wholesalers, and restaurants, where so many depend on takeout for want of time to cook – or tips as part of their pay. As of today. August 1st!
Emancipating Eateries
While picking up a snack box at a bakery without 13% GST may not match the social benefits of having time to pick up one’s child to feed them lunch at home, ending GST at eateries can benefit many in many ways. Celebrated for our cuisine, GST cast a pall over our prominence for the best people, beaches and food. GST dimmed our smiles and darkened our mood while depriving too many of that little extra needed to enjoy the same restaurants where so many work. And GST turned too many tourists into patrons resentful of 28% tax and service charge, reluctant to add further tips.
Emancipating our eateries from GST promises to restore our restaurant reputation, as well as helping workers, especially with multiple food services jobs.
Emancipation Day – Mostly?
Hmm. Just as British law delayed freedom and denied reparations in the 1830s, British governance has failed to impart fiscal competence here for decades. Holding one administration after another accountable only for perfecting the brutality of “broad based” taxation – while holding none accountable for unsustainable expenditures – was epitomised by the last administration’s gall and greed.
So. As the sun rises on 1 August 2025, many can celebrate emancipation from the fiscal fetters of GST on our goods and many of our services. Had their promise to “curb” spending been kept, tourists’ accommodations and the blessings of AI revenues could have justified removal of GST. That is, without replacing it with Goods Tax akin to duty and as a General Services Tax on our utilities and other services. Burdened by its costs and criminalisation of commerce, many must still work without pay as tax collectors – as compensation for our former administration’s excesses.
So, to the newly exempted sectors and to all with freedom to clear goods without a trail of tears, threats of fines and prison time – and to all consumers and visitors, alike: Happy Emancipation Day, mostly.
Repeal GST – and pass a balanced budget bill. Now.
This article reflects issues raised on July 5, 2021, at the House Select Committee on GST Public Hearing. [1] https://en.wikipedia.org/wiki/Emancipation_Day; [2] AUF GST Relief Plan: https://fb.watch/ucEv63okDW/; [3] https://www.investopedia.com/terms/v/velocity.asp; [4] https://anguillafocus.com/gst-to-be-removed-on-all-public-entertainment-events-from-14-july/
