kEEP BABIES, ANS TODDLERS SAFEBy Clint Chan Tack Tuesday, September 8 2009
GOVERNMENT yesterday launched a major crackdown against traffic offenders by imposing a range of hefty new penalties against them in its $44 billion Budget for 2010.
In making this announcement as she presented the budget in the House of Representatives, Finance Minister Karen Nunez-Tesheira also declared: “Government will bring legislation to this honourable House to make the use of child restraints mandatory for children five years and under.”
The minister’s announcement comes one week after the death of Nevi Vionna Ramjit in a vehicular accident near Gasparillo on the Solomon Hochoy Highway on August 30, a day before she would have celebrated her first birthday.
The story and photograph of the dead baby was carried in Newsday on Independence Day, and this was followed by a front page editorial on September 2 as part of the paper’s campaign to highlight the ongoing carnage on the nation’s roads and encourage the authorities to take the necessary action against offenders.
The penalties announced by Nunez-Tesheira include sums between $1,000-$2,000.
“Use of a vehicle without park lights; improper overtaking on the left side of the road; overtaking traffic at a dangerous place to do so; exceeding the specified speed limit will each face an increase from a fixed penalty of $200 to $1,000,” she declared.
“Take that!” Prime Minister Patrick Manning told Opposition MPs as Government MPs thumped their desks in support of these new measures.
Their applause had barely died down when Nunez-Tesheira dropped another increase. “The use of the Priority Buse Route by unauthorised vehicles will face an increase from $200 to $2,000,” the minister stated. In addition, she declared that a fixed penalty of $2,000 “will be applied to all motor vehicles that are not fitted with seatbelts.”
“This measure is expected to contribute an additional $40 million to Government’s revenue and will take place from January 1, 2010,” Nunez-Tesheira added.
Motor vehicle transfer taxes on a range of used motor vehicles and new motor vehicles will also be increased by 50 percent.
“This measure is expected to contribute an additional $10 million to Government’s revenue and will take effect from October 1, 2009,” she said.
Government will amend the cost of renewing driver’s licences from $200 every three years to $500 every five years. “This measure is expected to contribute an additional $35 million to Government’s revenue and will take place from January 1, 2010,” the minister added.
Government also increased taxes on alcohol and tobacco with effect from today.
Nunez-Tesheira said the excise duty on locally-manufactured rum, beer and other alcoholic products will be increased by 15 percent. The import duty on rum, beer and other alcoholic products of common market origin will also be increased by 15 percent. “Import duties on rum, beer and other alcoholic products from extra-regional sources will be increased by 30 percent,” Nunez-Tesheira said.
“Like all you could have is chaser?” asked Oropouche East MP Dr Roodal Moonilal. The minister said these measures will bring in an additional $50 million in revenue to Government and will require amendments to the Customs Act. Tobacco lovers got their favourite pastime snuffed out as Government increased the excise and import duty on tobacco products of common market origin and the tobacco tax on extra-regional tobacco products by 15 percent. The minister said these taxes will boost Government revenues by $50 million.
To stimulate the economy during these lean times, Nunez-Tesheira said: “Government will stimulate the construction sector by subcontracting infrastructure works to small contractors for building and refurbishment of community centres, early childhood care and education centres, police stations, recreation centres, health centres, and city/borough sidewalks,” she stated. There will also be an increase in the mobilisation fee from ten to 30 percent to contractors from the Infrastructure Development Fund to help them with the initial purchase of materials and services.
Effective from October 1, there will be increased funding for loan applicants to the National Entrpreneurship Development Company (Nedco).
First time applicants will now receive a maximum of $250,000. Second time applicants’ loan limits will be increased from $250,001 to $350,000. Third time applicants receive an increase from $350,001 to $500,000.
Manufacturers will benefit from an increase in their allowance for plant and machinery from 75 to 95 percent. Combined with a 25 percent wear and tear allowance for subsequent use of this equipment, Nunez-Tesheira said: “This measure would provide an additional benefit to manufacturers by reducing their tax liability.” This measure takes effect from January 1, 2010.
The minister also announced that corporation tax would be amended to allow approved property development companies to claim as a deduction 15 percent of the capital expenditure incurred in the construction of commercial or industrial buildings that began on or after October 1 but are completed on or before December 31, 2014.
Government will also expand the value of public sector contractors accessible to the small and micro enterprise sector from $1 million to $5 million, effective from October 1.
These were the main measures outlined in Nunez-Tesheira’s three-hour presentation which was long on rhetoric and had UNC MPs moaning “again” on several occasions.
The 2010 Budget was based on an oil price of US$55 per barrel and a gas price of US$2.75 per mmbtu.
