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by pltm
(PLTM) - The tax on money transfers should be removed completely, according to Allen O'Neal, At-Large candidate of the National Democratic Party (NDP). "By this time we should get rid of taxes on money transfers because it’s double taxation; you are taxing the people on the money that they earn, and you turn around and you taxing them on the money that you send," he said recently at one of the NDP's political rallies.
In July of last year, Premier and Finance Minister Hon. Dr Natalio 'Sowande' Wheatley announced that the Unity Government had agreed to slash the tax on remittances by some 50 percent, that is from 7 percent to 3.5 percent.
Despite public outcry, the Financing & Money Services (Amendment) Act, 2020 saw the 7 % tax on remittance services such as Money Gram and Western Union imposed by the former Andrew Fahie-led Virgin Islands Party administration.
However, Premier Wheatley in announcing the slash, said that a “large segment of the VI population uses the remittances services” and the reduction in taxes will alleviate some of the financial strain.
Dr. Wheatley stated that these services are not only utilized by persons who have families living abroad but specifically parents who send their children money while they are studying abroad.
“While we are collecting less revenue, this lower percentage may encourage a greater volume of transactions and this is in line with what was recommended before this initiative was introduced,” Dr. Wheatley explained.
It was projected that in the first year the tax was expected to garner $2,314,958.21 in taxes at the end of the first year.
During his budget speech on November 11 2021, former Premier Fahie stated that, for 2021, the revenues from Money Transfer Fees were estimated at $2.3M.
Initially, the revenues from the 7% fee were to be split equally, 20 percent each, to benefit the seniors, educational programs the agriculture industry, fisheries, a land bank and first-time homeowners.
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There are other ways I’d collecting money eg . Fix up the natural areas of natural beauty and charge a fee it will generate money
Ayo bent on killing exp
Ppl working here should keep the money in OUR economy. If they chose not too than at least they should pay the 7%. A lot of ppl come here to live and take the country for a ride.Persons who can afford to have their children study abroad definitely have bank accounts and can wire the money at much lesser fee than money gram or WU are charging
