CHIEF MINISTER SAYS TERRITORY’S FINANCES GROWING POSITIVELY
The government of the BVI is on target to collect the projected
budget revenue of some $192,000,000 for the fiscal year 2001,
according to reports from the Ministry of Finance.
Chief Minister and Minister of Finance the Honourable Ralph
T. O’Neal made the comments as he responded in the 23rd Sitting of
the 1st Session of the 14th Legislative Council Tuesday to a question
put to him by Representative for the 8th District Hon. Lloyd
Black.
He recalled that recurrent revenue for the period ended
30th April 2001 was $46,425,193. Recurrent revenue for the period ended
30th April 2000 was $42,685,454, the approximate difference being a net
increase of $3,700,000.
Recurrent revenue for the period ending 31st May 2001, given the current
trends and historical analysis, should approximate
$74,500,000. Recurrent revenue for the period ended 31st May 2000 was
$70, 849,325. The approximate difference is a net
increase of $3,700,000.
“Mr. Speaker, the analysis given indicates that we
are currently exceeding the revenue collected for the same periods in
2000,” Chief
Minister O’Neal declared. He reiterated that the year 2000 was the
territory’s most successful year ever, with sterling performances
being recorded in all sectorsof the Financial Services Industry.
Company license fees are the annual fees paid in either
May or November for companies to remain legally active to conduct business.
Company registration fees are fees paid to establish a company to conduct
business
“An analysis of the major revenue areas of the Financial Services
Sector, i.e. company license fees and company registration fees,
reveal that the sector still remains vibrant,” Chief Minister O’Neal
Company license fees for the period ended 30th April 2001
was $12,256,456, compared to $8,507,824 the year before. The
approximate difference is a net increase of $3,700,000.
“Figures for the company license fees for the period
ending 31st May 2001 compared with that for the period ended 31st May
2000,
is expected to yield a net increase of approximately $4M,” the Minister
of Finance projected.
Company registration fees for the period ended 30th April 2001 was $7,026,473,
while fees for the period ended 30th April 2000
was $9,066,430. The approximate difference is a net decrease of $2M. Figures
for company registration fees for the period ending
31st May 2001 compared with that for the period ended 31st May 2000 is
expected to net a decrease of $2M based on current
patterns.
“Mr. Speaker, the information just given indicates
that overall the territory’s finances are in general growing positively
in relation to
previous years,” the BVI leader indicated. He said though company
registration fees are below last year’s, it is too early in the
seasonal cycle for this industry to accurately predict the figures. “A
determination of any revenue shortfall in this sector of the economy can
be better assessed after the seasonal licensing period in May,” he
told the House. “The same pattern must be taken into consideration
when analyzing budget allocations with that of actual revenue.”
According to the Chief Minister, the particular decrease
in company registration fees is not necessarily attributed to any initiative,
as
such areas evolve within a product life cycle and thus the industry may
simply be reaching a maturity stage coupled with external
competition.
He said the situation is however being closely monitored
and contingency strategies are already being analyzed within and outside
this
sector of the economy by the Ministry of Finance. “Mr. Speaker, the
full effect of the Organization for Economic Cooperation and Development
(OECD) Harmful Tax Initiatives and the other related initiatives targeting
offshore finance countries will only be known after the initiatives have
taken effect,” Chief Minister O’Neal concluded.
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