We broke the news months ago and today government confirmed that it is planning to get rid of the sales tax and replace it with a new broad based consumption tax. Minister of State in Finance Jose Coye confirmed as much today saying that while a comprehensive review of the tax system is still underway, the consensus is to throw out the Sales Tax and replace it with a Goods and Services Tax, the GST.
Jose Coye, Minister of State in Finance
"The consumption tax certainly has been receiving favorable support so I would say that is one of the taxes that will be recommended. The idea behind the recommendation is to reduce the amount of taxes, manin the different taxes that are out there. That is in essence what we are looking at also and to try and rest the tax system on just a few pillars rather than the twenty six to twenty seven multiple taxes that are out there."
Keith Swift,
With the training that began today, it appears that government has already decided on this new tax.
Jose Coye,
"Yeah but what is happening is there will be a consumption tax. But when it comes to the fundamental features of that tax, what is extremely important, is what are the recommendations they will be putting forward. But I will say there is consensus for a consumption tax but the fundamental features are what we need to decide on."
Keith Swift,
What time period are we looking at for implementation oft his new broad based consumption tax?
Jose Coye,
"We would hope that by the next budget year we should be able to come forward with the new taxes, whatever they may be, the new structure that is."
