By Man from Baker Hill published May 22, 2015
- Adrian Davis(Governor) says:
Governor Adrian Davis
Thank you for this heartfelt message. I agree that collecting all the tax that is due is an important objective for the Government of Montserrat. Under the Constitution it is the elected Government who has responsibility for economic policy. As Chairman of Cabinet I can express a view but I would not expect to overturn a Government decision. When these matters have come up in Cabinet, I have consistently suggested two things. Firstly, that the Government should be more aggressive in collecting tax arrears, and that the best way to stimulate compliance would be to take legal action against persistent offenders. Secondly, that when Cabinet agrees customs duties exemptions we should try to examine the long term impact i.e. will the short term loss of revenue be balanced by greater tax receipts in the medium to long term as these businesses develop.
Minister Hogan says:
Minister Hogan
I think the Man from Baker Hill painted with a very wide brush, which is astutely mitigated by “when Cabinet agrees customs duties exemptions we should try to examine the long term impact i.e. will the short term loss of revenue be balanced by greater tax receipts in the medium to long term as these businesses develop.” There are other economic considerations such as the ‘import substitution’ case that supports our farmers; the consideration for small businesses that only maintain livelihoods and prevent people from falling into welfare; and for economic growth to happen ‘revenue foregone’ is only a measure of the minimum that needs to be recovered from foreign direct investment. We are really fortunate that our outgoing Governor Davis allowed us to use concessions to encourage FDI and inward investment, because without this instrument, DFIDism and Man from Baker Hill would bury us in taxology.
Of course there’s need for a little more science and focus to our development policies so I welcome the appointment to the GoM of a Chief Economist. Let’s bear in mind that the Fiscal Incentives Act was passed to help us manage development through concessions and waivers NOT to prevent, negate or obstruct progress.
- Claude Gerald says:
Claude Gerald
Assuming that tax laws are designed to be fair, it is the implementation of the law that is central to greater efficiency. Our politicians have sent mixed messages over the years that are tinged with a good dose of hypocrisy and deceit. Montserrat’s BIGGEST problem rests with a lack of central authority that has the capacity and the will to act legally and morally in every sphere of life. It is the reason why we have appalling institutional failures. As such by virtue of the leadership set every other authority buckles and disregards the duty to accountability and due processes. Taxes are a must and their compliance must not be questioned. There must be no room to allow tax breakers room to plead ridiculous claims. Firmness is required in executing this sacred duty of all of us.
The MFBH must be commended for his steadfastness as an opinion maker in this regard. The late Haycene Ryan and himself made a formidable duo in giving due respect to this important cause. Tax collection requires a fixed and determined mind set. A tax collector ought to be friendless and live that way. He is married to the task of collecting the people’s revenue. He must be a special hired hand.
Governor Davis’s excuse is plausible but not convincing. He has been what he has been: a total misfit and a man without presence. He came. He left. No positive mark in his foot print. Every act of his is devoid of a MIDAS TOUCH. Governor Davis will not enjoy his legacy when it is truthfully written and it is coming. And his questionable dalliance with a questionable politician that has extended his stay on island will be good fodder for future close watchers of ‘these governors’.
Until we grow up and realize that governance requires guts and fortitude and a sense of fairness irrespective of the players involved, the welfare of this society will always be on skids.
Editor’s comment:
Governor Davis says in his response above:” I have consistently suggested two things. Firstly, that the Government should be more aggressive in collecting tax arrears, and that the best way to stimulate compliance would be to take legal action against persistent offenders.”
Against what background did he make this comment. He exposes his ignorance again. Clearly he doesn’t question anything he is told “in Cabinet”. Be prepared to tell us how many people ‘your beloved Cabinet’ took to court on this issue and categorise them; then tell us how many people took you and the government to court for unfair and unjust treatment in procurement etc.
“Secondly, that when Cabinet agrees customs duties exemptions we should try to examine the long term impact…” Again you missed the point it seems Governor. Did you ensure that they ever tried to examine? There is at least a big number of concession given to a company that has cost Montserrat dearly. Did you know that the Concessions/Incentives committee did not approve that company for the very reasons Montserrat lost revenue and suffered at their hands. And, that you were still approving concessions about two days before the September 11 elections?
Minister Hogan should explain this single tirade against DFID and Man from Baker Hill – DFIDism and taxology. It is obvious that he is well immersed in the ignorance as to exactly what his government has inherited re tax issues alone. It is someone else’s taxes that pays them 60 per cent of their salaries. He is bound to pay his share, as he has no choice. Could it be he is on that beneficial list that is causing DFID so many worries? Or is he beginning his opposition to making sure those well to do like former MDC CEO who illegally just walked away with thousands of taxes. Whatever your meaning or application of your taxology to MfBH, you obviously do not follow the Man from Baker HIll. The CEO left this country under your watch and it is the rest of us who will suffer the DFIDism you talk about..
