VIP Gov’t forecasting increased revenue from taxes in 2024
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The projection was revealed by Virgin Islands Premier and Minister of Finance, Dr the Hon Natalio D. Wheatley (R7) during his budget speech presented on Tuesday, November 21, 2023.
Premier Wheatley said the technical experts at the Ministry of Finance projected revenues to be $382.67M and added that some $360.24M is expected to come from receipt of taxes, $5.96M from grants and $16.47M from other revenue sources.
“Madam Speaker, an economy in motion is one that is generating and supporting economic activity and creating economic opportunities for businesses and individuals. The effects of this are evident in the revenues received by the Government, which in turn represent a small fraction of the money that moves through the businesses and households,” he said.
The Premier detailed a breakdown which includes that Revenue from work permits is expected to increase from $9.37 million in 2023 to $9.51 million in 2024 and employment activity is reflected in the payroll tax received, which will increase by $2.16 million in 2024 to $59.83 million, compared to $57.67 million in the previous year.
Increase in revenues for several areas
He said revenues from Hotel Accommodation Tax, Motor Vehicle Rental Tax, Liquor and Still Licenses, and Cruising Permits are expected to increase by 1.02%, 12.41%, 43.59% and 4.69% respectively.
“These are all streams related to tourism activity, and it reflects the efforts that the Government and our agencies such as the BVI Airports Authority, The BVI Ports Authority, the BVI Tourist Board, the Cyril B. Romney Tortola Pier Park, the Virgin Islands Shipping Registry, our overseas offices, and others, have been making to market our tourism product and to develop the transportation linkages necessary to get visitors to our shores."
Tourist Arrival Levy is projected to increase by 10% to $2.46 million.
Meanwhile, Dr Wheatley said revenues from trade licences are expected to increase from $958,778 in 2023 to $980,282 in 2024 and revenue from banks and fiduciaries is expected to increase from $3.55 million to $3.64 million in 2024, and income from Money Transfer Fees should increase by 5.62%, from $2.03 million to $2.15 million.
“Revenue from the Registry for Corporate Affairs, which pertains to our financial services industry, is forecast to drop by 1.24% compared to 2023; from $$208.63 million to $206.05 million. Revenue from investment business is expected to grow by 1.25% to $4.16 million in 2024,” he further added.
Meanwhile, Dr Wheatley had also emphasised that approximately 41% of every dollar of government revenue raised, or $159.75M, will go towards compensation of Government employees and that approximately 24% of every dollar or $93.94M dollars will go towards paying for the goods and services required for running the operations of government.
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15 Responses to “VIP Gov’t forecasting increased revenue from taxes in 2024”
Does he think that the people of the BVI are idiots? He seems far removed from reality.
I will say no more.
people using the sea water for little or nothing
electronic transfer almost tax free
mostly small black business owners gets grilled
Where is Myron on that? Oh, I see.
Though there is no fixed methodology for budgeting, there is one (1) certainty, ie, there will never be enough money to fund every need at the desired levels; it requires prioritization. As the old maxim goes, you can want everything but you cannot do everything. Ministries, Departments, Divisions, Branches, etc, must adopt to the new normal of doing more with fewer resources; they must focus on maximizing allotted budget efficiency. Their success should be measured by how well they employed allotted resources to deliver the most services to the most people. They should anticipate and have prepared shelf-ready budget cut options, ie, various bands, 5%, 10%, etc.
Moreover, the VI infrastructure is poor shape and it needs a huge infusion of capital to improve the physical infrastructure for the use and enjoyment of residents, to grow the economy, ie, health, education, social services, water, wastewater, drainage (stormwater), electricity, gas, roads, public safety(police, fire), air and seaports, telecommunications, etc. The current budget severely underfunds the capital programme. What is the current listing of the Capital Improvement Programme (CIP) projects backlog and cost? To put a dent in the CIP, will require prudent borrowing. Borrowing sends us running for the hills up Sage Mountain but it is necessary to improve quality of life, standard of living, improve our national competitiveness with other OTs. Our prime competitors Bermuda and Caymsn Islands have O&M budgets in the billions, along with having billion(s) GDP. Borrow or stagnate in Third World status, lagging behind competitors. We can be among the top leaders by being bold, effective and efficient.