Opposition Leader Kamla Persad-Bissessar has revealed what she says is a Cabinet Note from the Ministry of Finance that substantiates her claims of Government's proposal to increase Value Added Tax and other taxes to earn revenue.
She first made the claim during her contribution on the Mid Year Budget Review last Friday.
But Prime Minister Dr Keith Rowley rubbished her claims, saying that the document did not come from the Government.
At the United National Congress meeting yesterday in Barrackpore, the Opposition Leader held up what she said was the Cabinet Note, dated May 21, 2024.
“They want to increase the overdraft facility,” the UNC leader revealed. “They will max out that overdraft, if they haven’t already done so. Appendix Four in this Cabinet Note says this is where they plan to get the money.”
The Opposition Leader points to a proposed revenue generating measure which will see adjustments to the tax structure.
“And this is where it is going to hit you in your pockets and everywhere else,” she warns. “They hope to get $75 million more. What they’ll do? Exempt income—they’re going to decrease what you can exempt when you’re doing your taxes.”
Mrs Persad-Bissessar then went on to list the other proposals from the document, which included an increase in Value Added Tax.
“VAT rate amendment in Appendix 7—for every 1% increase in VAT, $560 million VAT revenue is estimated to be earned,” she read. “An increase in the VAT rate to 15% can result in an additional revenue of $1.4 billion earned annually, once properly administered.”
However, Finance Minister, Colm Imbert, has rebutted the Opposition Leader’s assertions.
He says what Persad-Bissessar shared at the political meeting actually is a calculation showing the effect on revenue of increasing or decreasing taxes.
He maintains it is not a plan to be executed.