The Cabinet, at its 21st meeting on Wednesday October 2, 2013, received and discussed a report from the minister of finance providing the results of a mid-term budget review that showed projected deviations from financial targets as a result of additional non-discretionary expenditures arising. The 2013/14 budget contained revenue measures that would render a budget surplus and put the TCIG in a position to continue to refinance its debt in 2016 at sustainable interest rates.
After much deliberation and consideration of the various options to increase revenue, Cabinet concluded that the most equitable option was to increase the customs processing fee by 1.5% from 6% to 7.5% to take effect on November 1, 2013. The CPF applies to all importers. It is expected that once the recommendations of the Blue Ribbon Commission are introduced the CPF will return to its current level of 6%. While the CPF is broad based, its ultimate effect on prices to consumers should be minimal. Any price increases should not be applied until inventories that were imported prior to the increase, are exhausted.
The following chart is used to compare the anticipated CPF rate in TCI with the CPF in a number of other countries in the region. It should be noted that, even with a CPF of 7.5%, the CPF rate for Turks and Caicos is lower than the CPF in many other countries.
It should be noted that those countries whose CPF rates would be lower that 7.5% have tax regimes as follows:
The minister has indicated that no further revenue measures are anticipated in the current financial year, and the plan is that any new measures in the future will see a compensating adjustment in the existing revenue regime.
For further clarification or additional information regarding this notice, contact:
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