Supports Abolishing of Turn Over Tax
The Democratic Party on Thursday highlighted its Fiscal Policy as part of its 2014 Party Platform for the upcoming Parliamentary Elections. The Party Platform highlights the simplification and harmonizing of the tax system and the preference for indirect taxation, which would include the abolishing of the Turn over Tax in Favor of a Value Added Tax; “The DP believes that political parties should present their vision to the electorate. However, we are also very conscious that programs and plans are subjected to the finances of the country. On the topic of taxes therefore, we believe that simplification of our tax system is still very much needed. A simpler, more harmonious tax system supported by an improved tax organization can, in the opinion of the party, improve compliance and yield more income for government thus eliminating the annual search for new and untested taxes and fees.
“The party prefers indirect taxation. The Turn Over Tax (TOT) however in its current form is harmful to business and costly for the consumer. If we abolish the TOT and impose a type of VAT (value added tax), we can eliminate the profit tax, lower the wage tax, and exclude certain products and services from tax levies. We must ensure, however, that low-income earners, who do not pay wage tax, do not end up subjected to a higher cost of living due to the tax on food and other consumer goods.
“This way, we can create a stronger tax infrastructure. One that more equitably spreads the burden, fairly assesses the taxpayers, and eliminates the need for draconian collection methods. We believe this is a more effective and fair tax structure that will strengthen this country’s financial position for the very long term,” highlighted the Democratic Party Platform on Fiscal Policy