Tue | Sep 18, 2018

Asset tax unfair - Shaw

Published:Monday | March 23, 2015 | 12:00 AM

Arguing that the business process outsourcing sector offers significant potential for exponential growth in job creation, Audley Shaw, the opposition spokesman on finance, said the government should review recent tax measures which could impact its viability.

"We object to the proposal to impose a 10 per cent profit tax on this sector," Shaw said in the Budget debate last week.

"This sector must be treated as an emergency creator of jobs in the economy. The target of creating 20,000 jobs by 2018 is far too modest, this must be doubled to 40,000 jobs," he added.

The opposition spokesman further said the government should review the current asset tax regime. He noted that the applicable rates for the asset tax were changed in November of 2014, and argued that it appears to be inequitable for holders of assets with a nominal value of $500,000.

"This fee has been doubled from $50,000 per annum to $100,000 per annum. On the face of it, it appears iniquitous to charge such a high rate of 20 per cent of the asset value when an asset holder of $5 million pays the same fee, which amounts to a value of two per cent of the asset value," Shaw said.

"At the higher end of $50 million of asset value, where the tax is only $200,000, this is a mere 0.004 per cent of one per cent of the value of the asset. Surely, this scale of fees which was introduced last November is unfair and iniquitous, and victimises the holders of modest assets," he added.