EDITORIAL: Time to implement tax offset system

As the Barbados Revenue Authority (BRA) continues to roll-out its TAMIS system with varying degrees of success, it is almost time to file personal taxes again and for some businesses to close off their financial year. The TAMIS system is still unfamiliar to the public, but it is one that is designed to facilitate the capture and recording of income tax, and make it easier for the consumer to file their personal taxes. To their credit, BRA officials have provided easy-to-follow tutorials and videos on their website, so filing should be much simpler. Whenever business and individuals file or close off, however, they will be reminded that individual tax and VAT returns are still outstanding.

Though we are told their imminent payment is due, the ongoing lack of tax and VAT returns to the public is concerning. In what seems like many years ago, persons received their tax returns and used them for multiple purposes, whether to pay off some bills, treat themselves or save for a rainy day. Businesses could use their VAT returns to further invest in their companies. We appreciate the fact that the current Barbados Labour Party administration inherited the heavy load they did, but the lack of payment is also a burden to those who need it, especially during a period of austerity such as what we are experiencing.

For such a heavily taxed country, none feel it more than those who can least afford it. The introduction of the fuel tax from July 1, 2018 has hit motorists and those who purchase gas and diesel extremely hard. Even those without vehicles are expected to feel the pinch soon, as bus fares will soon be increased. The situation has also been hard on homeowners. In previous years, mortgage interest, home insurance and home repairs and retirement plans could be used as tax deductions; meanwhile, garbage and sewage contributions have been added onto water bills.

This is why relief, in some form, has to be considered. Though the IMF is happy with the gains Barbados has made since the introduction of structural adjustment measures, it has taken a toll on the average citizen and business, who is looking for any kind of alleviation.

That is why it is long past time to implement the tax offset system which can be used to full advantage. We have long made the point that the system ought to facilitate tax offsets that takes account of what they owe versus what the state owes them (if anything at all), instead of making consumer and business pay, regardless of whether the state owes or not. To our way of thinking, it is a much fairer system that allows accurate reckoning of what a person or company is required to pay, and it provides more immediate relief to those who wouldn’t have to pay as much.

We may be speaking out of turn – perhaps the upgrade to TAMIS may facilitate not only the capture of relevant earnings but offer in the future some functionality where offsets could happen – but it is an idea to pursue, which not only improves the level of service but give persons practical uses for their tax and VAT returns that they may not otherwise see in a hurry.

Barbados Advocate

Mailing Address:
Advocate Publishers (2000) Inc
Fontabelle, St. Michael, Barbados

Phone: (246) 467-2000
Fax: (246) 434-2020 / (246) 434-1000