Improved tax collection could balance budget

FINANCE Minster Colm Imbert said the estimated $3 billion to $5 billion that could be earned through the improved tax collection by the proposed TT Revenue Authority could be used to balance the national budget.

He was piloting a motion to adopt a joint select committee report on the TTRA Bill 2018.

He described the TTRA has a “tremendous opportunity to increase revenue collection” and if TTRA meant just 50 per cent of VAT, personal income tax, corporation tax, custom duties and petroleum profits tax, which was not collected due to inefficiencies in the system, was now collected this country would increase revenue by between $3 billion to $5 billion. He pointed out this year the deficit is $4 billion and therefore the national budget could be balanced immediately.

“I don’t know why the members opposite are so opposed to increasing efficiency in tax collection.”

He reported the Caribbean Regional Technical Assistance Centre (CARTAC) had described this country’s tax collection system as “highly inefficient” and recommended the setting up a revenue authority.

He said the chronic vacancies in the public service included the Board of Inland Revenue where there was 50 per cent vacancies. He said that was due to archaic structures like the Public Service Commission that had proved to be inefficient over multiple government administrations for 35 years.

He said one of the areas of concern was, under the bill, the finance minister would have too much power and would appoint people who would have access to taxpayer information. He described this as “mythology” as the finance minister only appointed the board and the board had no access to personal and private tax information.

Imbert also said security of tenure was guaranteed for workers that transferred into the TTRA.

He said he had been in Parliament for 27 years and heard ministers of public administration talk about reforming the public service. “It just not going to happen.”

Imbert said the TTRA had received widespread support and acceptance and the only entity opposing it was the Opposition. Asked by the Opposition about concerns by the Public Services Association (PSA) Imbert replied the PSA only had concerns about security of tenure which had been addressed.