2018 Budget will focus on revenue mobilisation, says Vele

TO fund the adjustment costs and lift the economic growth momentum, yet stay within the set medium term fiscal anchors, the 2018 Budget will focus on revenue mobilisation, says Treasury Secretary Dairi Vele says.
He said the strategy had substantial input from the Government’s 2015 comprehensive Tax Review and recent technical assistance from two International Monetary Fund teams.
“The 2018 Budget will mark the beginning of the implementation of the first medium-term revenue strategy,” he said.
“It will comprise a broadening of the tax base (which is currently quite narrow), new tax measures, alterations to the tax mix and much greater compliance efforts in 2018 and beyond. We collect more tax, not tax more,” Vele said.
The 2018 total revenue and grants budget is projected at K12.7 billion.
Compared to the 2017 supplementary budget, total revenue in 2018 is projected to increase by K1.75 billion (or 16 per cent) – and even more when compared to the latest revenue projection for the end of the 2017.
“Excluding the one-off revenue measures amounting to an estimated K1.2950 million, the increase in revenue amounts to at least 9 per cent compared to the much lower revised estimated outturns for end 2017.
“Most of the additional revenues in the 2018 Budget will be used to clear arrears, complete on-going projects and fund expenditure savings and revenue raising reforms and invest in our non-resources sector so that it is sustainable in the medium term. This is important.”