Post by Logan on Dec 21, 2016 4:33:20 GMT -6
Virgin Islands Gov. Mapp Calls Senate Into Special Session To Act On Measure Aimed At Generating $300 Million In Five Years
ST. THOMAS — Governor Kenneth Mapp has submitted to the Legislature his proposed “Virgin Islands Revenue Enhancement and Economic Recovery Act of 2017”, which the governor, in his transmittal letter to Senate President Nevillle James, says is structured “to address the financial challenges facing the government and ultimately, the Territory.”
According to Government House, Mr. Mapp has worked with his financial team for months to develop the 5-year plan after discussions with the financial rating agencies. The plan has been designed to identify opportunities to close the gap in the continuing structural deficits, to curtail continuous borrowing to meet the operating expenditures of the territory, and to enhance the government’s ability to pay income tax refunds to Virgin Islanders on a timely basis. The financial team has identified new revenue streams targeting specific non-essential commodities and areas of the economy that can contribute more without increasing the cost of living to V.I. residents. Items such as food, medicine, clothing and the essential components of raising a family or operating a business in the territory will not be affected by this proposed legislation.
The act is expected to generate approximately $300 million dollars over the next five years as part of the government’s the plan, Government House says. In his legislation, the governor has proposed generating revenue from what is commonly referred to as “sin tax”. By making modest increases to items such as beer, alcohol, cigarettes and carbonated beverages, revenue contributed to the territory will come from nonessential items, he said. The measures identify new revenues from external sources.
As proposed the plan will move the territory closer to eliminating the government’s annual operating deficits, and will enhance economic growth, leading to an annual operating surpluses by Fiscal Year 2021, according to the governor.
Read more: viconsortium.com/featured/mapp-calls-senate-into-special-session-to-act-on-measure-aimed-at-generating-300-million-in-five-years/
ST. THOMAS — Governor Kenneth Mapp has submitted to the Legislature his proposed “Virgin Islands Revenue Enhancement and Economic Recovery Act of 2017”, which the governor, in his transmittal letter to Senate President Nevillle James, says is structured “to address the financial challenges facing the government and ultimately, the Territory.”
According to Government House, Mr. Mapp has worked with his financial team for months to develop the 5-year plan after discussions with the financial rating agencies. The plan has been designed to identify opportunities to close the gap in the continuing structural deficits, to curtail continuous borrowing to meet the operating expenditures of the territory, and to enhance the government’s ability to pay income tax refunds to Virgin Islanders on a timely basis. The financial team has identified new revenue streams targeting specific non-essential commodities and areas of the economy that can contribute more without increasing the cost of living to V.I. residents. Items such as food, medicine, clothing and the essential components of raising a family or operating a business in the territory will not be affected by this proposed legislation.
The act is expected to generate approximately $300 million dollars over the next five years as part of the government’s the plan, Government House says. In his legislation, the governor has proposed generating revenue from what is commonly referred to as “sin tax”. By making modest increases to items such as beer, alcohol, cigarettes and carbonated beverages, revenue contributed to the territory will come from nonessential items, he said. The measures identify new revenues from external sources.
As proposed the plan will move the territory closer to eliminating the government’s annual operating deficits, and will enhance economic growth, leading to an annual operating surpluses by Fiscal Year 2021, according to the governor.
Read more: viconsortium.com/featured/mapp-calls-senate-into-special-session-to-act-on-measure-aimed-at-generating-300-million-in-five-years/