Attorney General Faris Al-Rawi yesterday clarified statements that the $12 billion in uncollected Value Added Tax (VAT) which he spoke about was taken out of context by the media.
Yesterday, Al-Rawi cleared his position on the matter at a press conference at the Hyatt Regency, Port-of-Spain, stating that it was important for the media to listen carefully on what ”we say in the context of what we said.”
It was during an address at a Chamber of Industry and Commerce event on Wednesday, Al-Rawi said he spoke about outstanding liabilities on VAT, which was taken out of context by the media.
“I specifically spoke about it over several years and in answer to questions that came, I cautioned that the $12 billion figure was a combination of events. It was actual amounts due, interest, penalties on those amounts over a span of a number of years, including the estimation of what should have been in the system, but what was not in the system.”
Al-Rawi said that conversation was put to Finance Minister Colm Imbert at Thursday’s post-Cabinet media briefing, resulting in someone asking if he was going to collect $12 billion this year.
Imbert, in response to the question, stated that the $12 billion was incorrect, stating that he did not know where Al-Rawi got the figure from.
Imbert explained that while the State was planning to recoup a significant amount of outstanding taxes via a tax amnesty, $500 million is the Government’s target.
“That is certainly not the conversation that was had at the Chamber of Commerce. Nor was the honourable minister (Imbert) present when the discussion was had and obviously could only answer the question put to him.”
Al-Rawi said the media should have understood the context in which he spoke.
“The fact is, when we speak about civil asset forfeiture that money laundering and tax evasion is a big issue for our country and if we mop up the leakage in revenue then we can certainly use that money for the running of our country particularly when revenue is a significant item on the national agenda.”