Articles

Fri 14th Dec 2012

Tax and customs duty exemptions to Mustique, Canouan and Taiwan a serious threat to the people SVG

Gonsalves has been fooling the people of SVG by overstating revenue estimates quite outrageously. This is irresponsible and shameful.

The table shows the utter madness and gross foolishness in the management of the SVG economy by the ULP regime. For the years 2010 to 2012, the revenue estimates have been wildly overstated. In 2010, for example, the revenue estimate was $913m. However, by August 2010, the actual revenue received by the government was only $323m.

If you extrapolate from this $323m received by August 2010, for the whole year, it is clear that a real estimate of revenue for 2010 was $484m.

$323m divided by 8, gives the average monthly revenue received in 2010, which equals $40.375m per month. Multiplying $40.375m by 12, then gives the estimated revenue received for 2010, which is $484m.

Year

2010

2011

2012

Total Revenue Estimate

$913m

$786m

$794m

Actual Revenue in August

$323m

$320m

$314m

Extrapolated Revenue for year

$484m

$400m

$471m

Estimated Shortfall in Revenue

$429m

$386m

$323m

(researched by Ivan O'Neal BSc (Hons), MSc, MBA)

The 2010 Budget Estimates overstated the total revenue for 2010 by approximately $429m. Extrapolating using the 2011 and 2012 Budget Estimates figures, shows that the total revenue for 2011 was overstated by about $386m and 2012 by $323m.

Given these wildly overstated figures for 2010, 2011 and 2012, we can confidently expect that the recent 2013 Budget Estimates to be totally nonsense too, and the estimate for total revenue to be overstated by some $300m.

Gonsalves says the economy is growing, but the Budget Estimate for total revenue in 2012 was $794m, which was $119m less than 2010. This shows that the economy is dying, and illustrates the incompetence of Gonsalves and highlights the fact that he lacks financial intelligence. There was a 13% drop in the Budget Estimates for total revenue between from 2010 to 2012 and Gonsalves says the economy is growing. He has no idea!

SVG is going through its most difficult financial and economic period in our history. Unemployment is high and the poor are suffering, yet Mustique, Canouan and Taiwan continue to receive blanket tax and customs exemptions. This Apartheid tax policy is a serious threat to the wellbeing of our people and the stability of our country.

Abolishing the tax and customs duty exemptions to Mustique, Canouan and Taiwan will bring the SVG Treasury over $500 million dollars every year in revenue. The opportunity cost of not collecting this $500 million dollars is staggering. We could build three science and technology universities, create mass employment, put a science lab in every school, provide free wireless internet to every house and positively change the academic landscape of our beloved country, by making high quality education the engine of the SVG economy.

We urgently need economic growth, but Gonsalves has shown he is utterly hopeless in stimulating economic growth in SVG. The ULP regime does not have the vision and academic ability to abolish the tax and customs duty exemption to Mustique, Canouan and Taiwan and deliver our beloved country from the bondage of dependency and depths of poverty.

Gonsalves must resign.

< Back to Articles