Shaw Counting on Tax Compliance to Plug Potential Fiscal Gap

Finance Minister Audley Shaw, says that the $16-billion needed to fund a further increase in the Income Tax threshold will not necessarily be an automatic tax measure.

He was speaking at a press conference last week.

The Income tax threshold is expected to increase from approximately $1-million this year to $1.5-million in April of 2017.

Minister Shaw says that tax compliance and other measures are being pursued to assist in plugging the gap.

Speaking with Nationwide news says the final size of the tax package will be dependent on the effictivness of the Government’s tax reform measures.

Meanwhile Minister Shaw says the country is on track to reduce it’s Wage bill to 9-percent of GDP by 2019 despite upcoming public sector wage negotiations.

The the Wage to GDP ratio currently sits over 10 percent representing approximately $20-billion over target.

Minister Shaw says along with public sector attrition and economic growth the target will be met.