Government rakes in historic $417.8m in revenue

BY OLIVIA ROSE

The Turks and Caicos Islands Government has earned a historic $417.8 million in revenue from accommodation taxes, import duties, and other sources which will fund its 2023/2024 budget expenditures.

The monies received from existing revenue streams will support 98.4% of the Government’s 2023/2024 planned expenditure which is set at $424.3 and the remaining 1.6% - i.e. the projected Operating Deficit of $6.6 million will be funded from Cash Reserves, according to the Minister of Finance, Investment, and Trade, Hon Erwin ‘Jay’ Saunders.

During his draft budget presentation in the House of Assembly on Wednesday, April 26, Saunders said that based on the economic forecast of the islands the $417m revenue is 1.1% higher than the (unaudited) actuals of financial year FY2022/23 which was a staggering ($413.2 million).

He said: “The first time these islands have ever achieved greater than $400m in revenues, although the (unaudited) actuals for FY2021/22 came in close with $398.8m.

“5.6% higher than the original budget for financial year FY2022/23 ($395.7m).”

The massive revenue was credited to the overperformance in FY 2022/2023 from revenue streams from the Ministry of Immigration and Border Services (Import Duties and Customs Processing Fees).

Coupled with this, millions were also collected from the Ministry of Finance, Investment & Trade (accommodation tax, seaport departure tax and excess revenues) and the Ministry of Tourism, Agriculture, Fisheries, Heritage, Religious Affairs, and the Environment (gaming machine tax).

He explained that this performance has given the government the “leeway and confidence” to invest heavily in programmes and initiatives that will foster the growth and development of the territory.

Saunders further highlighted key areas of focus that the funds will be geared to, this includes Inflation and Cost of Living Containment, Destination Management Reform, Public Sector Reform, Preservation and Enhancement of National Security, Population & Migration Policy Reform, Primary Sector Development, Housing &

Crown Land Management Reform, Critical Infrastructure (Re) Development and Human Capital Development.

Revenue Breakdown

Breaking down the total revenues, Saunders said the territory’s Recurrent Revenue is $414.9m, and Non-Recurrent Revenue is $2.9m, while grants from external donors and capital receipts accounted for $1.3m, and $1.6m respectively.

He said: “Mr. Speaker, I am happy to inform this Honourable House that the revenue projections for FY2023/24 include no new taxes.”

Recurrent Revenue

Turning his attention to the Government’s recurrent revenue streams, Saunders explained that Accommodation Tax brought in $106.5m, while Import Duties brought in $98.5m.

He added that: “Other Customs Duties= $35.0m, Work Permit and Other Immigration Fees = $36.8m, Business and Banking Related Receipts =$6.5m, Stamp Duty on Land Transactions = $58.3m, Ports and Sea Travel taxes = $17.4m, Vehicle & Driver Licence Fees = $6.8m, Fuel Tax = $8.5m, and Other Receipts = $40.4m.”