FINANCE MINISTER Colm Imbert has given details of government’s three-year plan for the TT Revenue Authority – the incoming state revenue-collection agency, which will be birthed out of a merger between the Inland Revenue Division and Customs and Excise Division.
Speaking in Parliament last Friday, Imbert said the plan for the new division seeks to facilitate a smooth merger between the two organisations and to have the TTRA meet key objectives over the next three years to integrate the organisations and retrain staff in the first year, transition the organisation into one that encourages customers to meet obligations voluntarily and to transform and grow the TTRA into an organisation that uses data-driven collection methods and streamlines customer service.
TTRA to address deficiencies in Customs, IRD
Imbert said government decided to establish the TTRA amid a need to address deficiencies in the current system, with separate revenue-collection and customs agencies.
“Longstanding deficiencies in the system have been identified and document in feasibility and performance reports dating back as early as 2002,” Imbert said. “The IRD currently faces challenges that impact the customer, the operations of the organisation and the level of tax collection within the country.”
He added that Customs and Excise’s pain and challenges lead to a longer and inconsistent revenue-collection methodology and higher prices for importers because of additional fees, and also results in the government missing out on tax revenue.
[caption id="attachment_1003637" align="alignnone" width="1024"] Finance Minister Colm Imbert -[/caption]
“The TTRA has set out several ways in which challenges can be mitigated to ultimately enhance the customer experience to drive voluntary compliance and employee experience to drive efficiencies. The TTRA also aims to provide a more seamless process to customers and create an environment focused on trust and transparency.”
For the TTRA to achieve this, Imbert said, it will set out and achieve several key objectives, the first of which is establishing a strong team.
The plan includes recruiting and retaining the right people and managing the transition in personnel and culture from the two separate entities into the single organisation. He said the TTRA will also revisit and redefine the enforcement function of the TTRA and develop learning and training programmes to promote customer engagement and optimise the TTRA’s workforce.
Other objectives of the TTRA include educating taxpayers and making it easier for them to comply, using data and innovation to modernise the organisation, drive greater compliance and modernise the collection methods of the TTRA and to create public trust in the organisation through public engagement.
The TTRA’s main aim, Imbert said, was to retain tax-collection levels in 2023 and increase the tax to GDP ratio in the following two years by one per cent and three per cent.
According to OECD statistics, TT’s tax-to-GDP ratio in 2019 was 24.4 per cent. It dropped
