British Virgin Islands’ Prime Minister, Ralph O’Neal, said that the territory will run a budget surplus during 2010, but the government still intends to review indirect taxes and fees on financial services.
The surplus should exceed forecasted government expenses. O’Neal said this would be achieved by streamlining spending in the public sector and a number of revenue boosting measures including: an increase in the taxation of alcohol and tobacco; and a comprehensive review of existing taxes and fees. He also said that the payroll tax system would be revised to create a progressive structure. He declined, in the interest of ‘brevity’, to go into more depth on possible tax measures to be introduced during the course of the year.
Last year, BVI ended with a budget deficit.
