FinSec: Limited Taxes Will Form Part of Growth Arrangement
Financial Secretary Joseph Waight has also weighed in on the successful outcome of the Super Bond renegotiation. He spoke directly to the need for additional tax measures to be implemented. While there will be no increases in tariffs for businesses, nor will there be taxes on the wage bill, the Fin Sec says that government has otherwise committed to reversing the present economic situation by agreeing to grow to a two point five percent turnaround.
Joseph Waight, Financial Secretary
“The commitment we made to the bondholders and to ourselves really is to consolidate, to do an adjustment, to take that primary which is a measure of your savings, to take that primary from a negative, minus one or so, up to half a point, up to a positive two point five because you need that money to be able to pay your interest costs. And then how do you do the consolidation? A blend of tax measures, tax increases, a lift in taxes and also a squeeze in the expenditure. Now there’s an array of taxes you can look at, the budget will announce them on Monday so you don’t have to wait very long , but the prime minister says that he is not touching the business tax and on the expenditure side nor is he touching the wage bill. The wage bill has been growing by leaps and bounds and we have to try to contain it. We can’t squeeze it down but at least to arrest the growth as best we can, and you do that by not hiring, natural retrenchment and that type of thing you know. But essentially, what we have committed to do is to turn around from a negative position in the primary measure to a positive of two to two and a half percent. That means fiscal tightening as well as lifting your income, your revenue stream.”