Sunday 22 September, 2019

VM Group chairman appeals for removal of temporary asset tax

Victoria Mutual Fairview Branch Manager, Andrea Arscott Allen demonstrates Victoria Mutual’s Express Online Banking feature to Dr  Nigel Clarke MP, Minister of Finance and the Public Service. Looking on are, from left, Michael McMorris Chairman of the Victoria Mutual Group and Courtney Campbell, President and CEO of the Victoria Mutual Group.

Victoria Mutual Fairview Branch Manager, Andrea Arscott Allen demonstrates Victoria Mutual’s Express Online Banking feature to Dr Nigel Clarke MP, Minister of Finance and the Public Service. Looking on are, from left, Michael McMorris Chairman of the Victoria Mutual Group and Courtney Campbell, President and CEO of the Victoria Mutual Group.

Chairman of the Victoria Mutual Group Michael McMorris is calling on the government to abolish the temporary asset tax on financial institutions. 

The abolition of assets tax payable by non-financial institutions was announced by Minister of Finance and the Public Service Dr Nigel Clarke, in his recent budget presentation, of the Revenue Measures for 2019/2020. With an effective implementation date for the year of assessment 2019, no payment would be due this March 15, as assets tax is paid for a current year. 

Financial institutions, such as banks and insurance companies, are however advised that they are still required to make an Assets Tax Declarations (AT02), as the change will not affect their obligation. 

But, McMorris conceded that "good decisions were made recently to remove all taxes for their distortionary impact".

"Minister (of Finance) I personally endorse those moves but believe it will be good decision not to stop halfway but go all the way on eliminating distortionary taxes such as the temporary asset tax on financial institutions. Such a tax which actually is a disincentive to growing the business and adding loans for organizations like ours which are committed to broadening financial inclusion by attempting to extend deeper and deeper into the society," he explained.

"With the asset tax, each additional loan brings greater taxation drag and increases the impetus for higher and not lower rates."


He was speaking at the official opening of the Victoria Mutual Group Fairview Financial Centre in Montego Bay, St James last Wednesday evening.

The Fairview Financial Centre is home to the 16th branch of the Victoria Mutual Building Society, and also serves clients of Victoria Mutual Wealth Management Limited – the investment arm of the VM Group.  

The opening of the Fairview Financial Centre saw key members of the VM Group, stakeholders in the parish of St James in attendance.

The Fairview Financial Centre is set to provide community members with greater access to the VM Group’s suite of financial products and services as they journey along the road to financial independence. Its establishment forms part of the VM Group’s continued commitment to the people of St James, neighbouring parishes and the nation as a whole.  

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