Fund tax relief with bank tariff
THE EDITOR, Sir:
Please allow me space in your prestigious newspaper to express my opinion on funding the proposed $1.5 million income tax relief. If the Government is serious about moving from taxing income to taxing consumption - and I hope it is - it should not only stick to its guns and move the income tax-free threshold up to $1.5 million, but should, in fact, right now, set the threshold at $5 million, which is what I understand is the ultimate intent of the finance minister.
The bank transaction tax, which was mooted by the previous government then quickly withdrawn amid protest, and an increase in the general consumption tax to 17 per cent, or even 17.5 per cent if required, should be used to fund the tax relief. Dipping into the Tourism Enhancement Fund (TEF) to finance the relief should be a last resort.
This Government has a lot of difficult decisions to make if it is to change our tax laws to put the onus on consumption rather than income, and to greatly reduce the public payroll by slashing the size of Government. It should think out of the box and make the decisions early to reap the rewards later in its term.
Spartan Health Club