The following tax reduction and reform measures were announced by Minister of Finance Minister, Hon. Camillo Gonsalves, during the presentation of the 2018 Estimates of Saint Vincent and the Grenadines at the House of Assembly on Monday 5th February 2018.
The Finance Minister outlined: a reduction in the standard rate of company taxes from 32.5% to 30%; a reduction in the marginal rate of personal income tax from 32.5% to 30%; a reduction in income tax rate for hotels from 30% to 29%; and the standard deduction for personal income tax will be raised from $18,000 to $20,000.
Minister Gonsalves said that the "government is committed to reducing the tax burden on Vincentians, while simultaneously ensuring that those who flout our tax laws are given an opportunity to choose between regularising their arrears, or face the full range of legally available enforcement measures."
The Minister explained that the measures continue the commitment of the government to provide economic stimuli via tax reductions and to improve, in practical and tangible ways, the condition of the Vincentian worker. He added, "Nationally, the lowering of the tax rate and raising of the threshold will cost the Government approximately $12 million."
Estimates amounting to $993,535,449.00, were presented by the Minister. The 2018 Budget comprises Recurrent Expenditure inclusive of Amortisation and Sinking Fund contributions of 776,879,739.00 and Capital Expenditure of 216,655,710.00.
The budget will be financed by current revenue of 621,658,138.00 and Capital receipts totalling 371,877,312.00. The 2018 Estimates records a modest Current Account surplus of $4.2 million. This represents an increase by 16,535,449.00, in comparison to the 2017 figure.