Imbert looks to ‘Millionaire Tax’

He said he was surprised to learn recently that, “the estimate from the Board of Inland Revenue in terms of individuals who have an income after deductions of in excess of $1 million per annum...

which means they’re earning $80,000 a month after deductions that we could generate $80 million from these people...just by adding five percent on to the additional income that they earn over $1 million.” According to Imbert, this meant, “the tax base is 20 times that...that is $1.6 billion you are talking about.” Regarding companies which have chargeable profits in excess of $1 million per annum, Imbert said this translated into over $500 million in revenue. Recalling that measures in the Budget have affected people at the lower end of the income spectrum , Imbert said it was appropriate that persons at the upper end share their part of this burden. “Since we’re in a difficult situation right now, we must spread the burden as equitably as we can,” the minister stated.

Reminding senators the online purchase tax is already in effect due to the Provision of Collection of Taxes Order, Imbert said Government collected approximately $1million in the first 11 days after the Order was published. He disclosed that $2.5 million was collected in November and another $2.5 million has been collected so far for the first half of this month, from the online tax.

Noting there is a higher utilisation of online purchases at Christmas time, Imbert was optimistic that Government could collect $3.5 million from the online tax by December 31. He disclosed , “I do some online shopping from time to time.” Imbert also said Government is considering providing incentives to major earners of foreign exchange in TT and overall strategies that would lead to more efficient tax collection in the country.