Providenciales, TCI, June 16, 2016 – More restaurants will be taxed as a result of the amendment to the Hotel & Restaurant Tax being passed in the House of Assembly. While finer points were discussed in a committee meeting of Parliament on Wednesday; there was still no threshold revealed for the change to the law.
It was explained that the TCI Cabinet will determine what earnings per year will set the bar on which restaurants must now apply an extra 12% tax to services; the monies are passed onto Government.
Traditionally, this tax was leveled primarily at restaurants serving visitors to the country, now with the change to the law, smaller restaurant owners could become subject to the tax and it means the cost of meals to residents at so called down home eateries will be more expensive. The Hotel & Restaurant Tax earned $52.8 million last budget year for TCIG; the second highest revenue earner for Government.