Opposition legislator Honourable Myron Walwyn has issued a stern warning to residents and businesses in the British Virgin Islands (BVI) to prepare for a potential tax increase following the government’s significant budgetary oversight linked to the recently implemented salary structure for public servants.
During Friday’s House of Assembly session, Walwyn highlighted the economic repercussions of what he described as a “monumental blunder” by the government. His comments followed the shocking revelation by Premier and Minister of Finance, Dr. the Honourable Natalio Wheatley, who disclosed that the government had underestimated the cost of the new salary structure by more than $13 million.
Originally, $11.7 million had been budgeted for the salary adjustments. However, a review by the Ministry of Finance found that the actual cost required an additional $13.3 million, bringing the total to nearly $25 million. This shortfall has prompted serious concerns about how the government plans to address the deficit.
Premier Wheatley, in response to the budgetary gap, announced that the government would consider revising the fee structure across various ministries and departments. He also hinted at possible amendments to legislation governing the maritime industry as part of the strategy to cover the unexpected costs.
However, Walwyn expressed scepticism about these measures, suggesting they would lead directly to increased taxes on residents and businesses. He estimated the total shortfall could be closer to $20 million, given the scope of the financial miscalculation, and warned that the public would be left to shoulder the burden through higher taxes.
The 6th District Representative referred to the Schedule of Additional Provisions (SAP), which outlined the government’s spending adjustments, as a mini-budget that has no revenue-raising initiatives to boost the territory’s economy.
Walwyn also criticized the absence of an economic council to provide advice to the minister of finance, suggesting that this lack of expert guidance contributed to the significant budgeting error. He argued that the recent SAP offers no tangible benefits to the residents of the territory.
As the government grapples with this financial oversight, residents and businesses in the BVI remain on high alert for the potential economic fallout, with many bracing for the impact of possible tax hikes and increased fees in the near future.