The Government has resurrected the longstanding proposal for the establishment of the TT Revenue Authority (TTRA), which aims to consolidate existing departments of our taxation system into one centralised agency.
While the idea for such an agency has been in the ether for a while now (the proposal goes back almost decades) the Government this month dusted it off and debated it in the Senate, shorn of the requirement for it to be passed with a constitutional majority. That requirement had been a key sticking point in previous attempts to get the TTRA up and running.
Finance Minister Colm Imbert had no qualms in suggesting changes were made to the long-pending legislation in order to forestall efforts by the Opposition to block the bill.
The Opposition has, in turn, signalled its intention to challenge the legislation in court and if such a challenge materialises it will mean this issue has effectively been placed in the hands of judges to determine a policy by the Executive.
Meanwhile, it is for the Cabinet to decide when the legislation will be debated in the House of Representatives, and if passage is secured, it will also be for Cabinet to determine when the law will be proclaimed. So all eyes will be on Mr Imbert next month when he delivers the budget for any indication as to the timeline of implementation for the measures now being considered.
No doubt, pandemic or no, the Government is desirous of raising revenue collection in light of the increasing debt being incurred by the State due to fallen revenue streams. But it has never seemed to be the right moment to introduce the TTRA, which has also always been a political lightning rod.
Former PNM labour minister Jennifer Baptiste-Primus had been among the vociferous opponents to the TTRA before her stint in governance, amid concern over the impact of the reform on employment levels.
Such concerns about retrenchment sit alongside deeper concerns about whether the new agency will work any differently from what currently obtains. Will staff become more efficient and effective? Will members of the public experience better customer service?
The Government has arguably built up some goodwill among the business community by extending its recent tax amnesty, but many businesses still clamour for action to be taken in relation to outstanding VAT refunds, amid complaints of customs fee hikes and other issues where revenue collection and payment affect operations.
Meanwhile, the TTRA appears to be part of the groundwork for the introduction of the property tax, long vilified, which might soon be implemented, given the process of land valuation being undertaken.
Is the timing of all of this right?
The Government is likely to counter objections by noting it has never been the right time for any of these measures. If not now, in the middle of the biggest revenue shortfall in a generation, when?
But the Cabinet should nonetheless tailor its proposals in such a way as to ensure greater buy-in.
For example, some feel larger commercial enterprises
