Falklands : Falklands Chamber of Commerce Express Concern About Tax System
Submitted by Falkland Islands News Network (Juanita Brock) 27.07.2008 (Article Archived on 10.08.2008)
Falkland Islands Chamber of Commerce Members have expressed dismay about the Government's proposals to change the tax system.
CHAMBER MEMBERS EXPRESS CONCERNS ABOUT THE TAX SYSTEM
By J. Brock (FINN)
Results from the Tax Survey recently commissioned by the Falkland Islands Chamber of Commerce for its members have revealed that one of the main concerns members have deals with the Falkland Islands Government reducing its expenditure in accordance with the Mid Term Financial Plan. They feel that this budget was a quick fix in order to cover for budget short-falls.
Another concern is that this budget and its new tax increases puts an undue financial burden on businesses, especially where their employees are concerned. The survey concludes that businesses will review the cost of employing labour and the take-home benefits enjoyed by employees.
Businesses have confidence in the tax system but there are drawbacks that is eroding that confidence. Recent changes have made it difficult for businesses to make decisions about tax but worryingly, the survey says that it is possible that some business operations could be moved overseas for better financial rewards.
It was felt that FIG should be helping to generate wealth in the business sector by giving generous tax relief on investments. Instead, members feel that FIG is focused on increasing revenue instead of reducing expenditure
Businesses in the Falklands are unhappy that they were not consulted prior to the introduction of the MSL/Employment Tax, the 5% increase in corporation tax and the 30% increase in the Loligo Quota Fees.
FINN is hopeful that the new Financial Advisor will help to show FIG how to comply with the mid-term financial plan and how to make savings by decreasing expenditure in the appropriate department budgets.
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