CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Anguilla Announces Tax Measures For 2011

Anguilla Announces Tax Measures For 2011

by Phillip Morton, Investors

31 December 2010

Announcing tax measures for the forthcoming year, Anguilla’s Chief Minister, Hubert Hughes, in his third 2010 budget, said that the government’s continued fiscal consolidation efforts are going a long way to balancing the territory’s recurring budget deficit.

A record deficit of XCD66.2m in 2009 was slashed to XCD36.9m during 2010, Hughes announced, assisted by a fiscal consolidation programme which included a reduction in civil service salaries by 5%, cuts in outsourcing and internal purchasing budgets, and cuts in welfare. Substantial cuts to the number of civil servants, of up to 30%, as required by the UK Foreign and Commonwealth Office, are planned for 2011.

On the revenue side, the government has implemented a 7% Communications Levy, increases in customs duty on specific items, and an increase in the Customs Surcharge to 3%.

Revenue for 2011 is budgeted optimistically at XCD177.68m, an increase of XCD41m on that expected to have been collected in 2010.

New revenue streams, as detailed by Hughes in his latest Budget, are expected to generate XCD21.3m. The tax measures are:

  • An increase in the tax rate of Property Tax from 0.0015% to 0.00375%;
  • The implementation of a 7% levy on the sale of petroleum products, such as gasoline and diesel at the retail level, as announced previously;
  • The introduction of an Interim Stabilization Levy at a rate of 3% on the gross income of employees, to be matched by the employer. Self-employed persons will be subject to a 6% rate on earnings;
  • Marginal increases on various licences, namely driving licences, liquor licences, food premises licenses, and villa rental licences; and
  • An increase from 1% to 3% in the Customs Administrative Surcharge.

In his budget speech, Hughes stated:

“In accordance with basic economics, increases in taxes during a downturn could be counterproductive. Madam Speaker, it must be reiterated that the new tax measures being implemented for 2011, though necessary to lessen the financial gap, are also a step towards ensuring that our revenues are derived from more sustainable sources and towards a future of fiscal stability. Indeed the intention is to review the revenue base as early as possible in 2011 to ensure more certainty in terms of revenue collection and the repeal of nuisance revenue measures.”

“Currently, a significant portion of our revenues comes from sources such as, stamp duties and work permits. We can no longer continue to be reliant on these sources as these are unpredictable revenue streams.”

“Expanding the revenue base will result in generating more revenue and in the long run will give us the financial stability needed to provide better service and development for the people of Anguilla.”

TAGS: individuals | tax | investment | economics | business | fiscal policy | employees | international financial centres (IFC) | budget | offshore | Anguilla

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »