By Carlena Knight
While there have been some concerns about several of the waivers being offered to the public, Cabinet is confident that the move will bring about “positive impacts” for the country.
Last week, Cabinet announced that it would be offering a number of waivers to residents, to include a property tax amnesty.
APUA residential customers who are in arrears for electricity and water before and up to December 31st 2021, will have their debts to the company forgiven, while residents with outstanding hospital bills at the Sir Lester Bird Medical Centre which are in arrears for more than 180 days, will have their debts forgiven also.
This brought on concerns on the economic impact the debt forgiveness may have on the country which continues to rebound from the Covid-19 pandemic while some, like the main Opposition party have referred to the initiative as an election gimmick.
But according to Cabinet Spokesperson Melford Nicholas, it may be a case where increased cash flow could be seen.
“For the government to write it off, it doesn’t change anything and what is built into this measure, particularly with the Inland Revenue, it’s a possibility that we could see an increased cash flow because if persons want to avail themselves with it, they are certainly going to have to pay 2022 and with the increased flow it would mean that those revenues that are collected from inland revenue will go into the Treasury.
“That’s how the Treasury operates on a cash flow basis so the more cash they have, the more they are able to make remittances or to settle obligations that the government has to its many creditors. So, from the government’s standpoint, we see it as an all positive; it gives people relief and it will intend to increase the cash flow of the government,” Nicholas explained.
This is not the first time that the Gaston Browne-led administration has offered an amnesty on several areas to residents and, according to Nicholas, just like in the past with these waivers, the hope is to aid in “changing the fortune for many”.
“Now that we are going to see more employment being created, as they clear those debts off, as they are able to resume a level of, well, let me just say good living, and to have the comforted home, we want people to enjoy those comforts and that is part of what we are hoping to do here.
“When that happens, it will bring more rate payers back to APUA. We saw it happen in 2014 when at least 6,000 persons had resumed paying of their bills. So, in as much as APUA has obligations to the bank to meet those loan obligations that they have just taken, they have not drawn down on all of it. But we are satisfied that the response that we are going to get from the rate payers is that more persons are going to be paying their bills at the end of every month, and we want to give every particular person an opportunity, post-Covid, to resume their normal livelihoods,” he added.
Nicholas was speaking on the matter on Thursday during the Post Cabinet Press Briefing.
In the most recent notes from the Cabinet, additional details were given on the property tax waiver for residents.
Instead of just offering the waiver for the two years wherein Covid would have impacted residents, the waiver will extend back to January 1, 2015 up until December 31, 2021.
The beneficiaries will however only qualify for the waiver if they pay taxes owed for this year. That payment is to be made before the end of March 2023.
