No Adjustment on Food & Fuel Tax Break, Minister Saunders stands by current “cushion”

By Dana Malcolm

Staff Writer

#TurksandCaicos, May 12, 2022 – Even as inflation spikes there is no foreseeable change in the Food and Fuel Tax Break. The Deputy Premier and Finance Minister E. Jay Saunders spoke in the House of Assembly about the tax break on Monday.

“No country can completely reverse it.  All our measures are designed to cushion the impact…it’s like an airbag in a car. If you get into an accident and the airbag deploys you don’t come out healthier…this is how our measure is designed to protect you, cushion you, from the impact.”

Saunders maintained the $15 million food and fuel tax break would not be able to outpace the inflation, and the Government had not intended it as such. In regards to groceries, he said, “Also residents are saying they’re only seeing pennies on the items if we’re reducing the cost by ten percent and you’re buying hundreds of dollars worth of items that may be made up of 20 or 30 different items so each item only has pennies in savings but collectively you get the 10 percent.”

The concern from residents and business owners is that prices for shipping, fuel, and goods have surpassed the level they were when the tax break was calculated. So whatever cushion might have been applicable at the March 15 announcement, is likely now eaten away.

The Finance Minister did not say whether money was an issue in re-working the tax break but he revealed that the TCI is projected to have an operating surplus of $6.8 million this fiscal year.

It is unstated what the threshold is for re-assessment but when the Premier spoke about the rising cost of living back in March, he maintained an adjustment was possible.