Tax Reform

The government has said that it hopes to completely abolish income tax in five years. But what would it replace it with? P.A.Y.E is one of the easiest tax to collect. Some persons are saying that we should go the way of indirect taxation like G.C.T and tax everything and use PATH to help out those who might fall through the cracks. The government is being warned to go easy on this proposal. Personally I am not in favor of the $1.5 million threshold increase. I think the prudent think would have been to raise it to where it is now over a three year period. Next year the government faces a challenge in finding the money to fund the balance of the $1.5 million dollar tax plan. A lot of persons are in support of the $1,000,271.00 being implemented right across the board for all PAYE employees. This is a better plan than the original proposal. Some persons are upset that they will have to fork out money to pay for this tax when it was originally stated that it would  not lead to any increase in taxation.They are even more fearful that the balance of the give back will cost taxpayers even more. One thing I can say, is that any reform in taxation should be comprehensive and should include all the Statutory deductions, G.C.T and all the other taxes.