Legislation approving an array of new taxes announced in the last Budget has been approved and became effective in the New Year.
A statement from the Ministry of Finance announced that 35 per cent corporation tax on commercial banks, $20 environmental tax to help dispose of used tyres and the imposition of taxes on hybrid and CNG vehicles with engine sizes above 1799 cc, went into effect from January 1.
However, the implementation of the 10 per cent tax on lottery winnings had not been finalised says Minister in the Ministry of Finance Allyson West.
She said measures are being put in place for the imposition of the property tax which had been put on hold before the court.
In a release issued by the Ministry of Finance yesterday, it stated that the taxes had been assented to on December 19.
The environmental tax, West said will focus on importers who are charged $20 for each tyre brought into the country.
“That will be collected by Customs and Excise upon entry. We should see an immediate impact on this tax. That should be an easy one to ensure compliance and monitoring.”
With respect to the 35 per cent corporation tax imposed on banks and other companies from January 1, West said the Board of Inland Revenue would not see an impact until the end of March.
As to when the lottery winnings tax will go effect, West said this was still hanging in the balance.
This tax will only apply to winnings over $1,000.
“That has been deferred because there was recognition that the NLCB had to put some systems in place for the collection of that. The introduction of that has been deferred. We have not finalised a deadline as yet,” West said.
In addition to these measures, West said the ministry will be pursuing the property tax.
“We are waiting for the decision of the court on the property tax matter. In the meanwhile, we are putting things in place so as soon as the court matter is determined we can move ahead to get this tax implemented in 2018.”
West said these taxes will give the Government the kind of revenue it needs to get us safely through 2018.