Time to end the freeness

But the Government now proposes to increase the national debt by borrowing US$50 million to improve the Toco Road and to construct port facilities in Toco.

Are these projects among our priorities? Last year was said to be the toughest year for our economy since 1986. Estimated government revenue for 2016/2017 is $47.4 billion and estimated expenditure $53.4 billion, a deficit of $6 billion.

Our country cannot operate without collecting the revenues due from income tax, corporate tax, value added tax, house and building tax and without a significant reduction in subsidies. But is tax collection being vigorously pursued? Unfortunately, it appears to me that many people are successfully evading paying taxes, with those who pay subsidising the lifestyles of those who don’t pay.

Income tax and property tax in the UK, the US and Canada are quite substantial and are important sources of revenue for the Treasury.

Here are the income tax rates payable on high incomes in some selected countries: In Canada the rate for income between $140,389 and $200,000 is 29 percent; over $200,000 it is 33 percent. The personal income tax rate in Jamaica stands at 25 percent.

In Barbados the rate is 17.5 percent on the first Bds$35,000 of taxable income, and 35 percent thereafter.

In Grenada residents earning more than EC$60,000 pay a 30 percent rate. In the US the tax payable by high income earners is 39.6 percent.

In the UK, on incomes of 43,001- 150,000 pounds sterling, the rate is 40 percent and over 150,000 pounds it is 45 percent.

In Australia incomes over A$180,000 attract a rate of 49 percent.

In Trinidad and Tobago, after a tax-free personal allowance of $72,000, a flat rate of 30 percent is applicable whether the taxable income is $73,000 or $1,000,000 or more.

The Minister of Finance has said the fuel subsidy had cost the country $31 billion during the last ten years and has been a significant drain on our financial resources.

From 2000 to 2014, the subsidy averaged $3.5 billion annually and when the oil price exceeded US$100 a barrel the subsidy exceeded $6 billion annually. Even after the adjustment in domestic fuel prices in November 2015, the subsidy remained close to $600 million.

At a US$45 a barrel oil price, Imbert said the subsidy would increase to $850 million and at US$50 a barrel the subsidy would exceed $1 billion.

On April 8, 2016, the date of the minister’s statement, the oil price was US$39.72 a barrel. Since October 10, 2016, the price has exceeded US$50 a barrel and thus an increase in the subsidy.

The current subsidised prices of $3.38 a litre for super gasoline and $2 a litre for diesel continue to be lower that the prices for these commodities in many First World countries. In TT a litre of bottled water costs more than gasoline.

Meanwhile, the subsidised round-trip airfare between TT has remained unchanged at $300 since 1994 while the true cost of the trip is between $600 and $700 a person.

With an estimated 800,000 passengers annually, a moderate fare increase of $50 for a one -way trip will increase CAL’s revenue by $40 million annually. How many items or services are there with the same selling price for 23 years? A minimal increase of $50 on a one-way ticket is justifiable in this country where a litre of coconut water costs $40.

W h a t will the taxi fare from Portof- Spain to Toco be?