Despite uncertainty surrounding the implementation of value-added tax (VAT), Financial Secretary John Rolle said yesterday he does not expect a "wholesale change" from the current proposed tax model.

Rolle said there ought not be any delays in pushing the government's tax reform plan forward. "I think the point that should be made is that there is no uncertainty over the need for the government to reduce the deficit, and raise more revenue," he said.

"...I think the work will continue to support something that very closely resembles what the government has put on the drawing board. "The government may adjust the parameters here and there.

The adjustments may take into account stakeholder feedback, but I would not expect wholesale change of the fiscal plan. "One should not.

One should be looking to see how the plan can be fine tuned coming out of this public private sector process."

Rolle said the consultation process between the government and the private sector will give the government an opportunity to adjust its plan, but keep the overall goal in mind, which is to reduce the deficit needs to be reduced, expenditures need to be controlled and revenue collections must improve.

Prime Minister Perry Christie announced last month the government has abandoned its original plan to introduce VAT at 15 percent. Christie said he would be willing to consider alternatives to VAT if the Coalition for Responsible Taxation and other private sector stakeholders present one that is viable.

The Coalition is working on a study, which it intends to present to the government sometime next month. Christie also hinted there may be a delay in the VAT implementation. Ministry of Finance Consultant James Smith said recently Christie's suggestion of a delay was "not helpful" and added to public "uncertainty" over the issue. Several other observers agreed.

The government had said it expected to receive an additional $200 million in revenue annually under a 15 percent VAT rate. Minister of Financial Services Ryan Pinder said last month the rate will depend in part on the amount of money the government is able to derive from the taxation of web shops.

Tourism Minister Obie Wilchcombe announced last month that Cabinet will review a proposal to regulate web shops. Wilchcombe is pushing to regulate web shops by July 1.

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