THE ANNOUNCEMENT on Saturday by Finance Minister Colm Imbert of the payment of tax refunds this week has triggered mixed views.
In a statement, Imbert said on the basis of requests by members of the public, he authorised the Board of Inland Revenue (BIR) to pay all individual income-tax refunds of up to $20,000.
He said after a detailed review, the BIR advised him that 33,466 tax refund cheques had been printed and were ready for distribution. The entire process, he later added, took months.
However, the Opposition UNC questioned the timing of the announcement, which came days ahead of Monday’s local government elections, saying it could be seen as a possible misuse of state resources for political purposes. National Transformation Alliance (NTA) political leader Gary Griffith expressed similar concern.
The truth is, the payment of tax refunds, whether due to individuals or businesses, is always welcome no matter when it occurs.
While we should always be vigilant about the use of state resources for private political gain, the issue here is the need for clearer timelines of implementation when it comes to policy directives or fixed systems and practices in the finance ministry.
The announcement of refunds comes as the Government closes off a tax amnesty due to expire at the end of the month. The close of the financial year (September 30) is also fast approaching.
It does no harm for the state to address outstanding arrears before moving on to the next period. Indeed, there is a longstanding need for the public sector to act more swiftly when it comes to processing payments of any kind owed to citizens.
Recent trends suggest the Government has been moving to pay more refunds in various ways.
In the mid-year review, the Government disclosed that more VAT refunds were paid out, to the tune of $800 million. Companies with such refunds due were scheduled to receive cash in the months of May and June. VAT bonds were also to be paid to some owed large arrears – over $250,000 – and applications for these bonds closed in May.
The State has not given a ballpark figure for the refunds to be paid from this week, but they will have to be part of the adjustment of figures as the end of the financial year approaches.
Of course, more details of the Government’s taxation policies are to be expected in the upcoming budget.
In that regard, Monday’s election was seen by some as a referendum on proposed local government reform, which is tied to taxation and other issues.
The Prime Minister has signalled reform will proceed regardless of the result and regardless of the position of the Opposition (some of the reforms do not require special majorities).
But with the path to the next general election steeped in uncertainty – given the mixed results of Monday’s poll – it is a good question whether the PNM will maintain course on its taxation policies in the months ahead.
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