Improvement in compliance is a top priority for the Inland Revenue Division (IRD) as it moves into its first phase of its current modernisation plan.
Acting Comptroller of the IRD, Dr Raphael Stephens, says “modern tax laws based on international good practices, a new organisation structure based on tax segmentation, new job descriptions and training opportunities for staff will ultimately transform the Inland Revenue Division into a modern and professional tax service”.
Before the Homegrown Programme, Grenada had the lowest tax effort (Current Revenues as a proportion of Gross Domestic Product) in the OECS region, at 18%. Eighteen months later, Grenada has made significant strides and the Tax Effort is now close to 21%. Over the next few years, this effort will reach 25% and much of this rise will come from improvement in tax administration and a steadily growing economy.
The IRD is now Government’s largest revenue collection agency; a position previously held by the Division of Customs and Excise for many years. The main reason for this change is the introduction of Value Added Tax and an overall reduction in border taxes on account of trade liberalisation.
According to Grenada’s Fiscal Performance for April 2015, the IRD accounted for $23.7 million of the $45.6 million in total revenue collected. The Division of Customs and Excise collected $19.6 million. Both Divisions met their April targets of $23.6 million and $19.3 million respectively.
Permanent Secretary in the Ministry of Finance and Energy, Mr Timothy Antoine, says “the principle of equity or “fair share” is of paramount importance. Indeed, this issue has been raised by the Social Partners and is now in sharp focus by Government. We are taking deliberate steps and are beginning to see results in this regard. That said, there is still much work to be done to make our Inland Revenue, the modern and professional service, it ought to become”.
Ministry of Finance & Energy