The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government has signed a contract for a new real property tax management system, as it moves to boost property coverage ratios and efficiency in tax administration/collection.

Delivering the keynote address at the 11th Abaco Business Outlook conference yesterday, Michael Halkitis, minister of state for finance, said the Government was focused on introducing a new Property Tax Management and CAMA System.

He said this will enable the Real Property Tax Department to “improve the coverage ratio of the tax system, provide accurate tax information, manage arrears and collections and lead to an overall enhancement in the efficiency of the department”.

Mr Halkitis added that the Government recently signed a contract with Tyler Technologies to replace the current real property tax system. He added that a general re-assessment of properties on the register was being undertaken in order to get values up to date, by either indexing or trending existing valuations to achieve better horizontal equity.

And the Government was also implementing an arrears action plan, using private collectors to assist with the collection of outstanding taxes. It is looking at amendments to the Property Tax Legislation to ensure it is in line with best practices.

Mr Halkitis said the Government has taken “concrete actions” to restrain the growth of public spending, and make it more efficient and effective.

“The overall framework for strengthened public financial management is taking place within the scope of the new Financial Administration and Audit Act. The Ministry of Finance is, in a determined fashion, enforcing strict expenditure discipline and accountability across all Government ministries, departments and public corporations,” he added.

“ In this regard, the Government is committed to a fundamental review of its operations and its expenditure and revenue control mechanisms, seeking to instill best practices wherever feasible. The Ministry of Finance, in particular, is being restructured and strengthened to enhance its capacity to more accountability and transparency are critical.

“With regards to public corporations, the Ministry of Finance is exerting more direct oversight of their financial affairs to ensure they strive for greater levels of efficiency and effectiveness, and that they are subject to greater accountability to the Government,” Mr Halkitis said.

“This will allow the budgeting process to be more comprehensively informed by the budgets of public corporations, such that a truly comprehensive approach to fiscal discipline is achieved. The Government has asked subsidy-dependent corporations to better align their expenditure plans with the resources that are available.

“In addition, the Government’s planning function is being strengthened such that new investments and projects are reviewed in an economically and financially sound and effective manner. The Government is also introducing new public sector efficiency on public spending for goods and services for all public entities including public corporations.”

Highlighting the proposed implementation of Value-Added Tax (VAT), Mr Halkitis said that while the rate had been reduced from 15 per cent to 7.5 per cent, the list of exemptions has been reduced substantially.

“Specifically, no goods will be exempted. It is evident that a lower VAT rate will yield somewhat less revenue than we had originally expected. As such, across-the- board reductions in tariffs and excises have not been feasible at this time. There will, however, be selective reductions in certain areas,” he said.