PSWG disappointed with budget presentation

The Private Sector Working Group on Tax Reform says it had hoped government would have taken-on more of its suggestions in the current budget exercise.

The group was one of several making proposals about tax reform and had proposed among other things that the GCT rate be slashed to 12.5 per cent and all items are subject to GCT.

The group also stressed that its recommendations were part of a package and would work as such.

However, after the finance minister's presentation yesterday the private sector working group says government implemented some of its recommendations.

However, the group said there were also things announced that would not have been consistent with the recommendations of the working group.

Spokesman for the private sector group, Brian Denning, noted that government reduced the GCT by only one percentage point, to 16.5 per cent with some previously exempted items now attracting tax.

Meanwhile, Mr Denning spoke of a concern about increased tax on the hotel sector and the telecoms industry.

He said sectors should not be picked out for taxation.