Budget Speech 2011 - Government of Grenada

While showing the necessary sensitivity to one group of taxpayers,
Government has the corresponding duty to be even handed, balanced and
fair to every taxpayer. It is only in this way that Government can fulfill its
duty to all taxpayers and preserve the integrity of the tax system.
In light of this, the amendment being sought should have retroactive effect
from September 1st 2008 – the effective date of commencement of the
crisis – to assist those employees who lost their jobs earlier in the crisis;
and expire on December 31st 2012, by which time it is anticipated that
Grenada would have overcome the crisis and be steadily growing.
Correspondingly, in determining the employee’s tax liability in any given
year, all income other than the severance payment, earned subsequent to
the date of severance must be treated as taxable income as defined by the
Income tax legislation and dealt with in accordance with the provisions of
the Act.
We wish to assure our Labour partners that the policy measures adopted by
this Government represent nothing more than a sincere attempt to handle
this matter in the best interest of all concerned, including unemployed and
displaced workers.
In closing this issue, I wish to state that in the face of the ongoing
challenges confronting our Country, the necessity for a social protocol, as
a key instrument of governance, remains real and urgent.
We urge the Labour Unions to recommit to this important effort.
5.10 SOCIAL PROTECTION
Mr. Speaker, I have already made reference to the improved benefits which
we have facilitated under the National Insurance Scheme.
In my previous Budget Statement, I reported one of the key findings of an
independent assessment of safety nets in Grenada is that as a proportion
of national income: Grenada has the highest level of safety nets in the
Western Hemisphere.
2011 Budget Statement Page 73