I just watched the programme Money Matters on CNC3 with Anthony Wilson and Judy Kanhai. Congrats to the producers for a programme that presents key issues in a neat and informative format. On the seven per cent online tax, quality guests presented cogent arguments which leave me to conclude that the BIR has missed the mark with the online tax.
Successive governments have spoken for years about diversifying the economy, and let's be honest, successive governments have failed to do so.
The problem I have is the tax unfairly targets a business model that has real legs for the future! If we are serious about developing light manufacturing, we're going to need a logistics industry to support an efficient outbound supply chain. If we ever hope to occupy some of the capacity on those empty courier aircraft leaving Piarco returning home, we're going to need to develop a lean, efficient outbound logistics industry.
I enjoy online shopping mostly for things that are simply unavailable at home. I can recall receiving a few bills that just didn't seem right. There definitely is a lack of consistency in charges received from one consignment to the next. This validates the leakages guests on the programme spoke about.
If it were my job at Customs to crack down on these leakages, I would simply adopt a spot-check approach. I would focus my limited best resources in a crackshot audit team and randomly sample consignments (and companies) from time to time, but in great detail. So basically a random audit approach. Show me your manifest. Choose X items–bring them for inspection. Show me the shipment, choose Y items, show me them on the manifest etc. And implement severe penalties where there is non-conformance. I suspect the courier companies will get into shape very fast. Or at least the playing field will be leveled as I am quite certain some of them are giving of their best.
Just a suggestion Mr Imbert–improve compliance and you will build our revenue.
David Sobrian