Trade union promises to resist any attempt to widen Grenada’s income tax net
ST GEORGE’S, Grenada, Thursday, November 8, 2012 – The Technical and Allied Workers’ Union (TAWU) has come out strongly in opposition to suggestions by Aaron Moses, manager of Grenada’s Public Sector Reform Project, that the country’s personal income tax (PIT) threshold should be lowered.
The PIT has been deducted from the salaries of Grenadians earning EC$60,000 or more per year but the prominent trade unions has said that it is “absolutely opposed’’ to lowering the threshold to capture workers who earn less than that amount and that it will resist any attempts to do such.
TAWU said that based on statements from Moses, who has also served as policy advisor to Prime Minister Tillman Thomas, it appears government is considering lowering the PIT threshold.
The union, which is headed by Senator Chester Humphrey, said such a move will be equivalent to the imposition of a tax on workers and would be “exceedingly regressive’’.
“The Grenada Technical and Allied Workers’ Union is of the view that the imposition of any such tax would be an unconscionable act and would lead to a further strangulation and slow down of the economy,’’ TAWU said in a statement. “Our union wishes to state categorically, that it is absolutely opposed to the imposition of Personal Income Tax on workers whose earnings are less than $60,000 annually.’’
It also would be an “onerous burden’’ to further tax the working class that has “witnessed high inflation, falling family incomes due to high unemployment – now over 40 percent – and an economy which has stalled, with businesses collapsing every day and where there are massive foreclosure on homes,’’ the TAWU statement added.