TCI Govt Figures on VAT Misleading - Analysis Shows Prices Will go up

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In its continued effort to introduce a Value Added Tax (VAT) to Turks and Caicos, the Turks and Caicos Interim Government (TCIG) is claiming that “significant reductions (in import duty), many in excess of the 11% rate of VAT, provide the evidence that prices need not rise after VAT." said Hugh McGarel-Groves, Chief Financial Officer, TCI Government. "After careful and considered analysis of the figures provided in the VAT Ordinance and subsequent statements clearly indicates that price increases of 4-6% are likely in Turks and Caicos as a result of the introduction of VAT" said Clive Stanbrook, Queen’s Counsel and Chairman of the TCIBC.

The TCIBC urge members of the business community, political leaders, and citizens to study the figures and make up their own minds. A full response to the TCIG claims and accompanying spreadsheets are available for download from the TCIBC website at

http://www.tcibc.org/tci-govt-figures-on-vat-are-misleading-prices-will-go-up/

"The TCIBC has continually asked TCIG for accurate information and supporting evidence that VAT is the best route forward for revenue collection in TCI. In response the people of the TCI have been given misinformation, misleading figures and a lack of any supporting financial modeling to support the TCIG claims that VAT will work" said Clive Stanbrook, Queen’s Counsel and Chairman of the TCIBC.

Whilst the TCIBC does not have a problem with taxation and recognizes the need to fund government, it is deeply concerned about the expected negative effects of the hasty introduction of VAT into the island’s tax structure.

The TCIBC's position is that VAT is inappropriate for Turks and Caicos and its unique economy at this point in its young development. The TCIBC believes that the recent gains in economic sustainability will be lost with the imposition of this "boiler plate", cookie cutter tax system.

This new VAT tax is not driven by a "grass roots" initiative in the islands, but is a politically driven tax imposed upon them by distant bureaucrats based in Europe without effective due process and regard to our specific economy and its future development. One size does not fit all.

“We repeat our message to the TCIG, FCO and the British Government that it is the view of virtually the entire business community in the Turks and Caicos that a Value Added Tax (VAT) is inappropriate, costly, cumbersome and unnecessary at this stage in the development of these Islands. In the short term it is clear that the existing taxation systems can be relied upon to raise such extra revenue as may be needed. " said Clive Stanbrook, Queen’s Counsel and Chairman of the TCIBC.

TCIBC calls upon the TCIG to stop treating the business community of TCI with disdain and engage the people of the TCI in a meaningful dialogue concerning the economic future of these islands.

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For further information contact
Executive Committee TCIBC
TCIBC
Email admin(at)tcibc(dot)org
Tel -649-946-4059
http://www.tcibc.org

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