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Fiscal queries


Fiscal queries

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?AS GOVERNMENT BEGINS the annual debate on its Estimates of Revenue and Expenditure today, a noted tax consultant says there are more questions than answers.
?Charles Tibbits, a director of Tax and Consultancy Services Ltd, is questioning how Government will finance the projected deficit of $1.4 billion in the 2014/2015 Estimates.
He wants to know, too, where Government hopes to get additional Value Added Tax (VAT) revenues from to justify its projected five per cent increase of VAT receipts, and is querying how the proposed Municipal Solid Waste Tax can be projected to earn $49 million when legislation to enact this has not gone before Parliament as yet.
Breaking the proposals down between revenue and expenditure, Tibbits said on the revenue side Government is projecting an almost $196 million increase in tax revenue in 2014/2015 over what is expected to be eventually realised for 2013/2014.
It also expects an increase in non-tax revenue of $130 million from the initial projection of $122.9 million in 2013/2014 to $252.6 million for 2014/2015, with the VAT bringing it to an anticipated $44 million more in VAT revenue and the Municipal Solid Waste tax making up $49 million of the increase in this category.
On the expenditure side, Government is expecting a decrease from an anticipated level of $3.925 billion for 2013/2014 to $3.873 billion for 2014/2015, with transfers to institutions and individuals dropping from $951 million in 2013/2014 to $725.8 million in 2014/2015.