$406K taken from money transfer tax revenues to fund scholarships
The government has commenced utilising proceeds from the Financing & Money Service (Amendment) Act — the legislation that applies a seven per cent tax on all monies leaving the territory through money transfer agencies.
Cabinet recently granted permission for government to access money from the ‘Miscellaneous Purpose Fund’ of the Financing and Money Service (Amendment) Act to fund scholarships for students in the territory.
According to a post-Cabinet statement on its November 3 meeting, eight accepted applicants will receive scholarships from the Ministry of Education.
The ministry will have access to $406,000 from the Fund to provide these students with the scholarships. Additionally, 14 students will be provided assistance with education grants courtesy of the Education Ministry for the 2021/2022 academic year.
The Financing and Money Service (Amendment) Act has been a hot topic since its introduction last year.
Premier and Finance Minister Andrew Fahie had noted at the time that the funds collected from the transactions would be deposited into a fund set aside for initiatives that contribute to national development.
The areas of national development included infrastructure, assistance programmes and any other initiatives subjected to the approval of Cabinet. A major initiative that was considered to benefit from the fund is educational programmes and scholarships which get 20 percent of the proceeds from the tax collected.
Monies collected from the seven percent will not be subject to other deductions after being collected by the Financial Service Commission. Premier Fahie had described the legislation as a very important development in the territory’s financial services. He said it is needed for times when economies across the world are threatened by pandemics such as COVID-19.
Increased emphasis on education
Meanwhile, the government has seemingly placed emphasis on education in the budget for the upcoming fiscal year. Fahie, in his budget presentation last week, indicated public educational institutions in the BVI are expected to benefit from an $8.5 million allocation for school infrastructural upgrades.
The Finance Minister also mentioned his government has started an Asia Scholarship programme between the VI government, the private sector and elite universities in Asia to offer scholarships for students studying in the BVI.
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A disgusting tax on those least able to object or afford it!
I agree with the tax, but it should be on a certain amount of money being transferred. I know a lot of poor persons who do not make a lot of money from the jet go and the main purpose that they are here is to help support their families back in their home countries. So if you are taxing them 7%, I am not in agreement with this, but if you are transferring an amount of say $3,000.00 or more then yes. Truth be told, that the majority of persons working menial jobs cannot even afford to send $1,000.00 to $2,000.00 at once to their families at home.
Also if you are leaving the country and returning home after retirement, you should not have to pay that high tax either. You all will only make people seriously consider the worth of migrating to the BVI for work…and when expats stop coming, then WE will have a big problem, because guess what, our own DO NOT want to do the menial work that expats accept. A balance is necessary.
Home rental will become an issue too if you look at the wider picture. The idea is good, but not carefully thought out and the repercussions will surely be felt down the road.
@My 2 cents
I don’t agree with the idea period!
1 Most of those persons already pay their fair share of taxes and fees whether it be local taxes, work permit fees, visa fees, SS, NHI ETC. On top of that they rent properties, patronize supermarkets and restaurants, entertainment but yet you want more?
2 You don’t raise or impose taxes during a recession let alone on the most vulnerable. many people were underemployed or left unemployed due to the pandemic but instead of helping them out we burden them further.
3 If you were going to tax why tax western union low to middle income earners? Why not the high income earners who send big monies via banking. institutions? Monkey know which tree fi climb.
This got to be damage control
Do they know the meaning….This is sufferers money, they are taking and giving to previlidge people…
Please learn how to spell before commenting crap
Just like the stimulus grants……..these people are beyond a joke !!!!!!!!!!!
Yo! half a dat alone was generated from the big fool up belle vue who always taking people deposit money and sending it Nigeria. Yall betta be vigilant about these people
This is adequate evidence of the lack of Christian values in this Territory. When Jesus took the money from a fish’s mouth to pay tax he was pointing out how the poor are exploited for the benefits of those who are better off.
When Jesus took the money from a fish’s mouth he was pointing how the pastors have your dumb ass hook and using your money for their pleasure.
What’s the criteria for qualifying for one of these scholarships?
Can expat children benefit?
Your so proud of such act !
Time will tell .
The wicked shall fade