The Finance Minister said that this year will see a stricter enforcement of the VAT Act and Income Tax Act regarding collection of unpaid amounts

During his 2012 Budget Address on Monday, Prime Minister Dr. Ralph Gonsalves disclosed that the VAT revenue of this country has declined considerably since 2008, decreasing from 153.54 million dollars in 2008 to 132.30 million dollars in 2011. In order to combat this severe reduction, Dr. Gonsalves announced that his government will be putting measures in place to ensure that persons who are supposed to be paying Value Added Tax (VAT) make their payments.

According to Gonsalves, the decline in VAT revenue comes as a result of the global economic crisis, along with the increases in the exempt and zero rated items. He stated that other factors contributing to the decrease in VAT collection are the level of compliance by VAT registrants, and the increase in fiscal concessions granted.

The Prime Minister said that his government will not sit back and allow such behavior to flourish, while adding that a number of measures will be implemented to reverse the downward trend of VAT revenue collection. Gonsalves also stated the importance of correcting the weaknesses in the administration of the Value Added Tax here.

The Finance Minister said that this year will see a stricter enforcement of the VAT Act and Income Tax Act regarding collection of unpaid amounts.