$ 406,000 deducted from income from the tax on money transfers to fund scholarships

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Western Union and MoneyGram are popular money transfer companies in BVI.

The government has started using the proceeds of the Financing & Money Service (Amendment) Act – legislation that imposes a seven percent tax on all money leaving the territory through transfer agencies. silver.

The Cabinet recently granted the government permission to access money from the Funding and Monetary Service (Amendment) Act’s “Miscellaneous Fund” to fund scholarships for students in the territory.

Eight successful applicants will receive scholarships from the Ministry of Education, according to a post-Cabinet statement at its Nov. 3 meeting.

The ministry will have access to $ 406,000 from the Fund to provide scholarships to these students. In addition, 14 students will benefit from educational financial aid offered by the Ministry of Education for the 2021/2022 school year.

The Finance and Monetary Service (Amendment) Act has been a hot topic since its introduction last year.

Prime Minister and Minister of Finance Andrew Fahie then indicated that funds collected during transactions would be deposited in a fund reserved for initiatives contributing to national development.

The areas of national development included infrastructure, assistance programs and any other initiative subject to Cabinet approval. A major initiative that has been seen to benefit from the fund is educational programs and scholarships which receive 20 percent of the tax proceeds collected.

Amounts collected on the seven percent will not be subject to further deductions after being collected by the Financial Services Commission. Prime Minister Fahie described the legislation as a very important development in the territory’s financial services. He said this was necessary when economies around the world are threatened by pandemics such as COVID-19.

Increased focus on education

Meanwhile, the government has apparently placed emphasis on education in the budget for the coming fiscal year. Fahie, in his budget presentation last week, said public education institutions in the BVI are expected to receive an allocation of $ 8.5 million for school infrastructure upgrades.

The finance minister also mentioned that his government has launched an Asia scholarship program between the VI government, the private sector and elite universities in Asia to provide scholarships for students studying in BVI.

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