I must admit that I actually like the new withdrawal tax. For several reasons: 1. The tax tackles the issue of Tax evasion head on- the real persons who will be feeling the tax were the people who evade income tax..not the PAYE earners who cannot hide their income. 2. The tax has to be read in the context with the hike in the non-taxable portion of income. Technically the tax works out as J$1 per J$1000 transaction but the Government just gave me back J$40,000+ in reduced income taxes. So technically I would have to spend J$40 Million+ in expenditure over a year to be burdened by this new tax. 3. The tax is regressive. this is great from a private sector point of view because as a percentage of expenditure they get taxed less but the government actually makes a helluva lot more money. 4. If the government can make J$2.1 Billion from a tax with an average rate of less than 1%...My anger is that the government should be forced to highlight a timeline to eliminate income taxes..Cause from a pure efficiency perspective this tax is easier and cheaper to collect than income taxes as you only end up monitoring the banks as opposed to every individual over the age of 18..
Posted on: Tue, 22 Apr 2014 08:20:03 +0000
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