SVG

Gov’t extends tax amnesty, proposes VAT lottery

KINGSTOWN, St. Vincent – The government is extending by one month an amnesty on interest for unpaid taxes even as it announced Tuesday a lottery to encourage greater compliance with the nation’s value-added tax (VAT) laws.

The state is waiving up to 80 per cent of tax interests and penalties dating back to 1999 as it seeks to collect some of the EC$221 million owed to the Inland Revenue Department (IRD).

And Prime Minister and Minister of Finance Dr. Ralph Gonsalves told a press briefing that the VAT lottery will encourage consumers to demand receipts, thereby forcing businesses to pay over the 15 per cent VAT to the Treasury.

He said that not collecting the EC$221 million in outstanding taxes could cause “some destabilisations to some persons, companies and so forth.

“I am not having the money to spend on things that need to be spent in the country …” he told reporters.

Gonsalves said the tax amnesty has to ensure that persons who have arrears don’t feel that they are getting a break while those who paid on time “are at a disadvantage and therefore, certain issues of moral hazard arise.

“So, there has to be a sense of balance,” he said, adding that the amnesty is an “excellent opportunity” for persons and companies to regularise their tax accounts.

“… clearly, people who have PAYE monies, those monies are trust monies, you have to pay them over. People who collect VAT, those are trust monies, you have to pay them over because you already collected them on behalf of the government, you can’t use them, it is not your money,” he said.

Tax lottery

Meanwhile, Gonsalves said that the proposed VAT lottery is to ensure that goods and service providers issue receipts, thereby creating a record of the transaction.

“If there is no record … the government doesn’t get the 15 per cent [VAT]. So, to help me to get the 15 per cent, and to help you to have a prospect of doing something, if you have your receipt, you have a chance to be a part of the VAT lottery with you VAT receipt,” he said.

“… When you buy something …, insist that you get your receipt because you may have a chance to get a piece of change,” Gonsalves further stated.

The government hopes to begin the tax lottery next month, continuing through Christmas and will announce the details after they are finalised by the IRD and the National Lotteries Authority.

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Discussion

7 thoughts on “Gov’t extends tax amnesty, proposes VAT lottery

  1. Its already a lottery, in fact living and eating for many of SVG’s citizens is a lottery, with only the winners in society eating on a regular basis.

    Gonsalves, carry on festering.

    Posted by Peter | May 16, 2012, 07:53
  2. I am glad to find this post very valuable for me, as it contains lot of information.

    I always prefer to read the quality content and this thing I found in your post.

    Thanks for sharing.

    Posted by Birmingham Vat Tax Service | May 16, 2012, 08:31
  3. IF THE KINGSTOWN TRADERS WERE PAID THE MULTI MILLIONS OWED TO THEM BY GOVERNMENT FOR MONTHS AND YEARS, THE WOULD BE IN A BETTER POSITION TO PAY THEIR VAT BILLS.

    GONSALVES HAS GOT THE COUNTRY SO BROKE HE IS PANNICKING TO GRAB ANYTHING. DID YOU HEAR THAT A LICENSE TAX IS TO BE APPLIED TO FARMERS DONKEYS, ITS TRUE.

    WAS ANY VAT OR TAX PAID ON THE US$1 MILLION IN CASH THAT THE ULP REFUSE TO GIVE ACCOUNT OF?

    Posted by Peter | May 16, 2012, 20:37
  4. ChecK this out. I know a friend of mines who did some work for government. Up to now the government has not paid him. But, he had to pay the VAT on the good he used to do the work for which the government has not yet paid. He told me that if he had known that Government would have stayed so lond to pay he, he would not have paid any VAT. This government will always have problems with VAT if they do not pay their bills due to the people who do business with it. It is hard to pay in VAT when the government owes you and is not paying. How this government expect to collect VAT expiditiously if if continues to owe $M of dollars to the business people? Pay the people and they will pay VAT. That is the balance needed? But of course Ralph nah know much bout business? Does he?

    Posted by AHA | May 17, 2012, 14:05
  5. Gunzzie want money to buy the next elections?

    Posted by AH RUDE | May 18, 2012, 08:04
  6. AH RUDE, he’s already got it. The only hope is that puss is replaced with gangrene.

    That will surely happen if VINCYPOWA gets to suck…

    Posted by Peter | May 20, 2012, 08:05
  7. As sure as you can be that God made little green apples, you can be absolutly sure that giving people money and gifts to vote for you or a political party, is voting fraud and vote rigging.

    These are ilegal acts that we can see and all know about, how about what we do not know about, what else has gone on?

    FRAUD FRAUD FRAUD FRAUD FRAUD FRAUD FRAUD, Xs seven.

    Posted by Peter | May 20, 2012, 12:01

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