Members of the OECS Tax Reform and Administration Commission, headed by Sir Alister McIntyre, visited Grenada this week to hold consultations with various stakeholders on the report addressing New Approaches to Taxation and Tax Administration in the Eastern Caribbean Currency Union. On Monday April 26, the delegation held discussions with Cabinet and with the members of the Opposition. On Tuesday April 27, a national consultation was held at the Grenada Trade Centre, where representatives of the private and public sectors were able to pose questions and offer comments to the tax commissioners and discuss the proposals put forward in the report. Following the consultation, a media conference was held. Many of the issues raised in the discussions centered on the challenges for revenue generation, which now face governments, in light of the CSME and FTAA, where the collection of customs duties and taxes, which accounts for over 50% of government’s revenue in Grenada, will be significantly reduced. Extensive discussions were held on the introduction of a transaction- based tax, namely the Value Added Tax or VAT, which the Government of Grenada proposes to introduce in 2006. There were also recommendations for strengthening the Inland Revenue Department. Tax reform has become a critical issue, especially in the Caribbean, with the advent of the FTAA and the CSME in 2005. This series of consultations is consistent with the promise made in the 2004 Budget presentation and Government’s policy of increased transparency and regular consultation with the people of Grenada, Carriacou and Petit Martinique. Persons interested in reviewing the OECS Tax commission report can access it on the Government of Grenada’s website at www.gov.gd. SOURCE: MINISTRY OF FINANCE