The Grenada Government will forego the tax on an $18,000,000 payout to employees and retirees of SGU, the St George’s University.
Prime Minister Dr Keith Mitchell says Cabinet will make the decision ahead of the payout, planned to coincide with celebrations marking the United States intervention in October. Employees and retirees are to receive a gift of $1000 for each year of service to the university. Persons earning more than $60,000 should have been charged 30% on the excess, while those within the $60,000 range should have been charged 15%, but Mitchell said forgoing the tax is a sacrifice the government is prepared to make in a period of structural adjustment.
“This is indeed a beautiful and bright day for all citizens of this country but, as you know, we are under structural adjustment, so I have to be very careful because there are other people listening to me,” Mitchell noted in his address to announce the major investment into SGU by Canadian investors Atlas Partners, and a fund advised by Baring Private Equity, Asia.
“I want to assure you that Cabinet will be pleased to say to all the Grenadian personnel who have worked with the university and have benefitted from this, we are not going to take one cent of tax.”
SGU Chancellor Charles Modica says SGU is proud to honour its staff. “The actual payment will be made at Thanksgiving Day here in Grenada, or the day before, to commemorate Thanksgiving. It will take us that much time to figure it all out and get all the cheques written.”