A TAX amnesty has been announced by Minister of Finance and the Public Service Audley Shaw.

The measure is expected to help Government increase its tax revenue by 19.7 per cent over last year's collection.

Shaw, in his maiden Budget Debate presentation as finance minister, said the outstanding arrears plus interest and penalties across all tax types are $138 billion.

"The clear emphasis of my ministry is to improve collection of taxes due, significantly increase the collection of arrears due .... to widen the tax net by encouraging new entrants into the systems," Shaw said.

Compliance rates

According to the 2004 Matalon Tax Reform Committee, general consumption tax has the highest compliance rate at 55 per cent. Property tax compliance is less than 50 per cent.

The amnesty announced yesterday will see the Government granting waivers on interest and penalties across all tax types, once the principal sum is paid in full by June 30.

The percentage waiver will be decreased month after month until October, when the amnesty ends.