The Turks and Caicos Islands (TCI) Government reminds its citizens and businesses of a number of important changes to the public finances to be introduced from Wednesday, 1 April 2015.
As the Minister of Finance told the TCI House of Assembly, when successfully debating the 2015-16 Budget last week, there are no new revenue raising measures for the new financial year - but there are important changes being implemented.
“All of these changes are designed to support the development of our economy by reducing the red tape for our businesses, and to support our people in the process,” said TCI Minster of Finance Washington Missick.
All of the changes are effective from 1 April 2015 and include:
- The repeal of the 7.5% Customs FIT (Freight Insurance tax) – a move which will lower the costs of importing goods to the TCI in line with the Government’s tax rationalisation strategy.
- The removal of the majority of domestic financial service tax applied to a wide range of service fees charged by a financial institution to its customers. This tax now only applies to money transfers outgoing from the TCI – charged at 12% – again in line with the Government’s tax rationalisation strategy.
- Following the recent decision made in Cabinet, the TCI National Insurance Board pension regulations will be changed to ensure that monthly retirement pensions will be based on the ‘best five years of contributions’ of the past ten qualifying years. Pensioners will then receive a pension calculated on the 5 years of their highest total amount of insurable earnings. This will take effect retroactively from 1 January 2015.