IT is noted that the Government has signed a loan agreement with the Latin American Development Bank (CAF) for a Tax Administration Reform Programme. The Bds$30 million loan along with some counterpart financing by Government, is to strengthen the capacity of the Barbados Revenue Authority (BRA) and the Customs and Excise Department to carry out their mandate, the Minister of Finance and Economic Affairs, the Honourable Christopher Sinckler said at a signing ceremony last week with CAF Officials.
In re-engineering their operations and services, Governments around the world have tended to have tax administration up front since this is one of those areas that cannot be ignored and for obvious reasons. Tax revenues contribute to the financing of government programmes inclusive of services to citizens and the upkeep of the country. They finance education, health, security, housing, social security and where appropriate, support to economic sectors. On this score it is also noted that tax administration ensures that government collects all the revenues which it requires and which it has to work with. As such the state cannot do without the tax revenues from those in employment, the corporate sector, and from the professional class.
This policy has to be sustained. The arrangements with CAF are welcomed initiatives that should go a long way in bringing more order to tax administration and strengthening the arms of the revenue collection agencies. What however this newspaper would like to see is the implementation of the policy to bring the Customs and Excise Department under the aegis of the BRA. In stating this, we have to ask when the Government will make a more concerted effort to effect that policy which has been spoken about for years. This has taken long to materialise and we may boldly say that as the situation stands, it is holding up efficiency in Government administration. Sinckler also said at the signing ceremony that one of the main objectives of the programme is the improvement of technological integration of the administration systems, and the modernization of control equipment in customs. The BRA will act as the executing agency and will be responsible for the overall financial management of the project.
This speaks to the efficiency mentioned earlier bearing in mind that no longer can Barbados be held back by archaic systems in an environment where countries and its trading partners are upgrading their systems. Therefore, if there are clogs in the wheels of Government tax administration the country will have to remove them and to correct the situation. Failure to do so means that Barbados will continue to suffer by getting low rankings in the Doing Business Survey. Currently the island is languishing in position 132 out of just over 180 countries. Adequate tax administration processes are indicators that foreign investors and even domestic ones look for. They do not want to see a situation where Government operations with which they have to do business with, spread around the public service and where one agency does not know what another is doing. It is therefore up to the Government to do a complete overhaul and to proceed with what is necessary regardless of who do not like it.
Decision making in Government is very tardy and Barbados like some others in the Caribbean has been accused of having an implementation deficit. Now is the time to deal with this
situation.