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. UK Minister Opens Door To Scrapping Turks And Caicos VAT

UK Minister Opens Door To Scrapping Turks And Caicos VAT

by Amanda Banks, Tax-News.com, London

19 November 2012


A UK Minister’s response to a question tabled in the House of Commons by a fellow MP appears to have given the newly elected Turks and Caicos government the right to decide if it wants to scrap the islands’ controversial plans to introduce value-added tax (VAT) on April 1 next year.

Mark Simmonds, the recently appointed Parliamentary Under Secretary of State at the Foreign and Commonwealth Office (FCO) was asked by Labour MP Brian Donohue if he would reconsider the implementation of VAT in the Turks and Caicos Islands.

Simmonds replied that: “The introduction of value-added tax is a decision for the Turks and Caicos Islands government. The VAT Bill was signed into law on 18 July and will come into force on 1 April 2013.”

Rufus Ewing, the leader of the Progressive National Party, which was elected to power last week following three years of interim government in the Turks & Caicos Islands under Governor Ric Todd, is known to oppose the plans to introduce VAT.

Business leaders on the islands remain unconvinced by the news. A spokesman for the Turks and Caicos Independent Business Council (TCIBC) said: “On the surface Mr Simmonds appears to be supportive of the Turks and Caicos Islands but the question remains whether the Governor and FCO reflect his views. The real test will come when and if the new government attempt to abolish VAT and the Governor overrules them.”

The TCIBC together with many political leaders argue that, while VAT can work in a country that already has the necessary requirements for its administration, and a broad-based economy that would benefit from lower import duties, the small, single income (tourism) based economy in the islands is likely to be adversely affected by its introduction.

The 11% VAT rate, if introduced, will replace Communications Tax, Hotel & Restaurant Accommodation Tax, Vehicle Hire Stamp Duty, Insurance Premium Tax and the Domestic Financial Service Tax. It is thought that the resultant reduction in Customs Import Duty would be in the order of 10% to 15%.

TAGS: tax | value added tax (VAT) | Turks and Caicos Islands | United Kingdom | offshore

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







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 »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com 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 »