PM mulls tax on banks to fund UWI Campus

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Prime Minister Gaston Browne has said that his government is not afraid of imposing a tax on banks and other financial institutions to fund the presence of a landed campus of the University of the West Indies in Antigua.

“If we have to introduce a new tax in order to support this new university campus we are prepared to do so,” Browne told state tv.

“We are not even worried about political backlash,” he added.

The government plans to open the fourth landed campus of the UWI in Five Islands next year.

The prime minister says “for us, it’s a developmental issue.”

“And if we have to tax corporations including the banks and insurance companies that are making significant profits, we are prepared to do so,” he said.

The prime minister has in the past proposed taxing insurance companies but has now added banks to the list.

He said the proposed tax could be as much as 10 per cent on the profit of banks.

“We even contemplating a windfall tax so those banks that are making 20, 30, 40 million dollars a year, we are saying come next year, we may introduce a tax in which we take 10 per cent of their gross profits.”

Proposed Five Islands Campus

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8 COMMENTS

  1. CELL PHONES ARE NOT CONNECTED BY SATELLITES THRY ARE CONNECTED BY UNDERGROUND CABLES CRISSCROSSING A PORTION OF THE GLOBE.
    .
    They will simply pass it on to the consumer.

    Ultimately it’s the ordinary man that will pay that tax through hiked and new financial institution charges.

  2. NO INFORMATION IS STORED IN NO CLOUDS, IT IS STORED ON SOMEONE’S MAIN FRAME. IT IS A LIE A TRICK

    One bank gross 40 million dollars per annum. FROM WHOM? Wake up people….

    There are about six banks, that’s 240 million dollars per annum to the banks alone give and take a few millions.

    The insurance companies what do you think is there profit? With 1000s of cars that the government legislate it is the law to give the insurance company your money.

    To get a morgage insurance is a must look at the building boom……

    Your government my government have this information they adminstrate over all this. So WHOES INTEREST ARE THEY ACTING FOR?

  3. That makes perfect sense to me. These banks constantly “taxing” us with high fees and always come with no excuse for raising them. So tax the banks and insurances so that our fees can indirectly fund the education of children and not only the children of all the bank and insurance executive getting filty rich from our fees.

    • Their gross profit will increase your salary will decrease and the minimum wage remains the same and no salary increase in the tunnel.

  4. I wonder if the PM has a full understanding of his proposal. The proposal to tax their “gross profits” means they may end up paying more tax than the net operating profit that they make. Pray tell me how can this be fair or reasonable? This reminds me of the 3% Turnover Tax that the same ABLP Administration proposed to introduce in the 1990’s before business people shut down the island in protest.

    Clearly, this proposal is the product of a confused and desperate mind. Desperate because they make these grand plans, and have no idea how they going to fund them. Confused because they do not understand how to manage anything, so they butting about in the dark. And finally, they are foolish because in the end it is the consumer who will foot the bill.

    The banks will look to increase the interest rates charged on loans, as well as the fees charged for various services, to compensate for the reduction in their profits. Insurance companies are likely to increase the premium charged to customers, and blame it on higher re-insurance rates. However you look at it, the hammer will fall on the head of consumers who have no choice but to use the banks and insurance companies.

    Welcome to uninspired leadership in the economic poorhouse of the Caribbean

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