Colm calms online-tax fears House passes Finance Bill

He said it is crystal clear how the seven percent online tax will apply, being chargeable only to end-user consumers as defined by the Electronic Transactions Act, passed under the former People’s Partnership (PP) regime.

Accusing the Opposition of feigning ignorance over that Act, he said it is time to raise the standard of debate in the House.

“The (online) tax is applicable to a consumer, who brings in a good by air transportation using an electronic transaction and the good is enterred from a transit shed,” Imbert said. “It has nothing to do with the person who is passing through Piarco (Airport) with a suitcase.

It is also patently obvious that if somebody buys a gift for you and ships it through, that is not something that is acquired by an electronic transaction originating in TT.

“The whole intent of the measure is to dampen demand for foreign goods that create leakage of foreign exchange out of TT, so if someone in the US buys something using their own US$ in the US that has not an iota on the foreign exchange situation in TT. “If you are importing things for your business - raw materials for distribution and sale and retail- those items are subject to the online tax. It is simply for a consumer who buys something on Amazon or Best Buy or any of these online retail stores for their own personal use, not as a distributor, wholesaler or businessman.” “Online shooping is not a good thing for a developing countrybecause it contributes to economic leakage,” he added. Otherwise he refuted Oropouche East MP Dr Roodal Moonilal’s complaint that the proposed corporate tax hike on earnings over $1 million will be a disincentive to private firms building public housing. Imbert also said a registered trader in houses is exempt from tax, so the tax-hike does not apply to such persons, and that Moonilal should know that. The House adjourned to Friday November 18 at 1.30 pm to deal with the Gaming Bill.