VOLUME 15 ISSUE 34

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AUGUST 30TH, 2019 – SEPTEMBER 6TH, 2019

VOLUME 15 - NO. 34

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DON’T RAISE TAX ON MONEY TRANSFERS

By Todeline Defralien

T

he owner of the largest money transfer business in the Turks and Caicos Islands says it would be wrong and unfair to increase taxes on the money foreign workers send to their native countries to help their Chris Stokes, founder and families. C h r i s executive chairman of NCS Stokes, founder Enterprises and executive chairman of NCS Enterprises which operates MoneyGram and now Vigo by Western Union, said it would be a “bad mind” measure to increase taxes on remittances simply because people are upset about the amount of money that leaves the Turks and Caicos Islands. According to figures from the Financial Services Commission, US$161million was sent out of the Turks and Caicos Islands in remittances between January 2018 and March 2019. This is an average of $10.7million per month. Remittance companies currently pay TCIG 12 cents out of each dollar in domestic financial services sales tax. Stokes argued that it is not fair to tax the return on labour and ignore taxing the return on capital from large businesses. “I don’t think that it is fair to talk about taxing the return on labour, which is wages, and completely ignore taxing the return on capital, which is profit. It cannot be that you’re ok taxing somebody because he’s a small labourer and he has no voice, or he doesn’t want to get in any problems, so you tax him, while at the same time not willing to discuss taxing profits on capital,” said Stokes who is Jamaican national with longstanding and strong ties to the Turks and Caicos Islands. “There will be no discussion in Turks and Caicos Islands about taxing profits on capital, because it’s one of the things that the country sells itself on, and I am saying that doesn’t make it right to find the next easiest prey. In fact, it is wrong. It is wrong because both are inputs to production, both generate a return, so you don’t just find the easiest guy and you kill him.” Stokes said in his opinion the TCI

TCHTA partners with youth centre to inspire young people Several members of the Turks & Caicos Hotel and Tourism Association (TCHTA) have joined forces with the Edward Gartland Youth Centre this summer to host inspirational programs and economy is doing well and there is no need to raise additional taxes. “What the purposes of taxation are? There is no budget deficit, and the economy is doing well. There is no need to raise additional taxes to do whatever. And if there is a need for additional taxes, the place for those taxes is not remittances. There are all kinds of different operations going on. If it is that you’re talking about taxes because you are upset that somebody from another country sends money out of the country, then that requires a spiritual response and not an economic response, because that is what you call in Jamaica a bad mind. That’s a spiritual need not an economic need,” he explained. Additionally, Stokes said that persons should not be punished for

exercises. The Hartling Group, Wymara Resort, Beaches, Amanyara, Grace Bay Car Rentals and several other association members all came together to delivering value. He explained: “If somebody makes $1,000 in a forth night and sends home $200, understand that he is actually creating and leaving in this country $800 of value that frankly has helped to build this country. Don’t punish him because part of the cost of him staying here and part of the motivation for him to stay here and build Turks and Caicos is that he has an opportunity to support his family. He’s not sending money to rich people. It’s people feeding themselves, paying, rent, food and contributing to the economy.” He continued: “When you get paid $800, you probably have created $1,600 in value and when you get paid $1,000, you probably have created $2,000.00 in value. So it’s not a simple

host sessions at the youth facility with the aim of empowering and inspiring local youngsters. Members of the TCHTA are pictured here with some of the youngsters. thing and we have to look at what it is that we are doing, Is the idea to tax it so that more is kept here? There is no shortage of savings in the Turks and Caicos Islands. When the (commercial) banks are moving Turk and Caicos Islands savings to their treasury, why not tax that?” Stokes noted that he is not saying to tax the commercial banks, but there are more legitimate places that can be taxed. “I am saying if you have a problem of revenue and you need to tax somebody, there are far more legitimate places. If you are taxing the hardworking guy who stays here and the man works all week and sending $50, something that you spend on lunch, why is that, what are you doing.”

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