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St. George’s, June 15, 2010 (GIS) – Finance Minister Nazim Burke has reiterated government’s confidence in measures adopted to assist Grenadians and keep the economy afloat in the face of the global economic and financial crisis.

The administration of the National Democratic Congress, led by Prime Minister Tillman Thomas, will continue to do what’s in the best interest of the Grenadian people, said Hon. Burke, who is also Minister of Planning, Economy, Energy and Cooperatives.

“The biggest tax break ever enjoyed in the history of Grenada by Grenadians is a tax break that we gave within six months of coming into office,’’ Finance Minister Burke said.

“We got into office in July and by December, we had put into place a tax amnesty where we said to the population, ‘look, forget all the interests you’re owing; forget all the penalties; simply pay the principal amounts that are due and owing on your tax and we will treat you as though all of your taxes have been paid up.’ Never before in the history of the country had anything like this been done and it was done, I must add, at a time when the IMF said to us they would not support such a decision, and they would not support such an economic measure.’’

The amnesty was implemented, the Finance Minister said, “because we saw the opportunity there to, first of all, ensure that businesses that were struggling financially, who could not meet their tax obligations, can remain open; and by so doing, keep people employed, create jobs and create income in the population. We saw this as a measure that was wise to take in the wake of the economic crisis, to keep the economy stimulated and active.’’

Mr. Burke told the Government Information Service that it’s “absolutely ridiculous’’ for the opposition NNP to allege that government had failed a recent International Monetary Fund (IMF) economic review under what is known as the Poverty Reduction and Growth Facility (PRGF), and to have levelled claims against the current administration of causing economic hardship.

The PRGF was adopted in 2006 by the former NNP administration, which was defeated 11 – 4 in general elections in 2008.

The opposition charged that government is looking to implement new measures in which “there will be no more tax breaks for persons and institutions and the property of persons failing to pay on time will be confiscated.’’ 

“Let’s look at the record of the New National Party,’’ Mr. Burke said in a stern response. “Everybody knows of the Levera Project. Over 300 persons’ property was taken away from them. The Levera Development Company paid the then government $3.8 million to compensate those whose lands were taken and the government refused to pay a single cent to any of these persons. There are several incidents around the country of persons whose lands were simply taken away from them without any compensation at all. So it is absolutely ridiculous to suggest that this government is the one that is going to be taking properties away from people.’’

Contrary to the opinions of the opposition, the IMF review conducted in April was completed and approved by the Fund, said Hon Burke.

“As a result of which, $6.8 million was released to the Government of Grenada,’’ he said. “So to suggest that it was not done is just false. What qualifies the country for the extended credit facility is the successful passage and completion of the PRGF.’’

In other words, explained Mr. Burke, “had we not completed the PRGF successfully, we would not qualify to enter into the extended credit facility.’’

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