The Government's central approach to revenue is about increasing compliance and collections from existing taxes. Several structural and legislative reforms are planned for 2019/20 to make the Government's tax administration more efficient, productive, transparent and fair. The Budget makes provisions for the full establishment of a Revenue Enhancement Unit that will spearhead the Government's efforts to increase the revenue yield through compliance and collections.
Value Added Tax is expected to account for the bulk of the increase in revenue, particularly since this will be the first, full 12-month cycle for the Government to collect VAT at the 12 per cent rate.
What are some of the factors impacting revenue estimates?
In 2019/20, the Revenue Enhancement Unit will be fully established, helping to boost government revenue. The new tax agreement with the gaming houses will also be fully implemented this year, which is expected to secure higher receipts for the Government.
The Customs Modernization Project is also expected to translate into an increase in the revenue yield. Customs is currently implementing a new electronic single window platform that has been dubbed ‘Click2Clear’. The new Click2Clear platform, with its enhanced features, will help to minimize fraud and corruption and improve efficiency. Altogether, these efforts will help to safeguard against revenue leakage.
Historically, Government revenue has not performed at a sufficient level to meet the full needs of operating the Government. This is why various strategies have been undertaken to increase the Government's revenue to more sustainable levels. That being said, revenue has been steadily increasing in recent times, with the exception of 2017/18, when the Government saw a fall in revenue worth $27 million.
Our central approach to revenue is about making the Government more efficient and productive in the administration and collection of existing taxes and increasing compliance by making the tax system more transparent and fair."