Prime Minister Gaston Browne says despite what is being said by critics the Un-incorporated Business Tax will not be a new tax burden.
Speaking in Parliament earlier today, the PM said that the Un-incorporated Business Tax is simply a new measure that will capture businesses who does not currently pay corporated income tax and at the same time, seeks to ensure that businesses covered under this act does not exploit the new tax by claiming that their business is unincorporated.
“The whole idea i to ensure that we don not create a loophole in which individuals which are presently paying taxes under the Corporate Income Tax Act having the opportunity now to trade as a sole-trader or joint traders and thereby avert paying taxes. so this is not necessarily a new tax, it is a new bill, a new construction but to cover existing tax payers.”
The nation’s leader said the Government, with the implementation on the un-incorporated business tax, will be trying to capture the approximately $10 million which would have been lost from the business sector through the repeal of Personal Income Tax. He said it is simply a mere ‘substitute’.
The Prime Minister further added that the tax bill was drafted to ensure that it is simple and revenue neutral.
“As I go through this bill Mr. Speaker you’d recognize that even the requirement fie, rather than filing on a monthly basis, they will now file on a quarterly basis so it is a far simpler process.”
The nation’s leader maintained that that there will be no increase in the charge on businesses.