00:00Monday's budget centred on giving regular citizens certain financial breaks,
00:06a reduction in super gas price, tax relief on private pensions,
00:11the public sector's 10% wage increase, among other items.
00:15But corporate TNT was told electricity rates will increase,
00:19a landlord business surcharge will be implemented,
00:22and increased duties on rum, spirits, beer and tobacco products take immediate effect,
00:27moves that the minister expects may cause a ripple effect.
00:32There are expectations at all sides that businesses will pass on costs to regular consumers.
00:40I expect that.
00:41What I also expect is also a little bit more activity from the commercial sector,
00:45from the businesses and from members of the population themselves
00:49to push back against passing the building on.
00:52Minister Tangu says with each of these fiscal measures,
00:56the taxes are minor.
00:58The tax on beer works out to a minuscule,
01:01I believe it's below 10 cents per bottle of beer.
01:06An increase of below 10 cents per bottle of beer.
01:09A bottle of beer says, I don't know, I don't know,
01:11$12.
01:15So I am asking to provide 10 cents more per bottle of beer.
01:22If that is the figure, and I believe it may be lower,
01:24they are not going to be drinking a whole case of beer at that time.
01:28So even if,
01:29but even if you are looking at a case of beer,
01:34the tax still is minuscule.
01:37Minister Tangu also rebutted claims by the opposition
01:40that the landlord tax is just a form of property tax.
01:44The property tax that they have tried to put in place
01:47was based on an assumed rental value,
01:51on commercial properties.
01:52So your home, whether it was generating an income or not,
01:55would have had to pay a tax as if it was generating.
01:58This is completely different.
02:00This is on commercial equity.
02:02This is on people who are renting.
02:04Those costs may or may not be passed on to others.
02:08It is then up to those persons who are renting
02:10to decide what they want to do.
02:12But it is unethical and inappropriate and illegal
02:15for persons to be engaging in commercial activities
02:19and not pay their payers.
02:21So the legislation was designed to balance,
02:24to make sure we bring people to book.
02:26He says ultimately, consumers hold the power.
02:30I assume that businesses will accept their own responsibility
02:35to be part of the process of billing generality.
02:38And if all that they are focused on
02:40is their own private profit margins,
02:42they will see their profit margins fall
02:45as other people move elsewhere.
02:48Cindy Ragubatika Singh, TV6 News.
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