Renegade MP Trevor Moniz has spoken out against the ongoing push from the international business sector for lower levels of taxation.

Mr. Moniz, who was recently ousted from the United Bermuda Party (UBP) after falling out of favour with the party over the last two years, was speaking out after it was revealed last week that senior members of the Chamber of Ccommerce's International Companies Division (ICD), including ICD head David Ezekiel, were to meet with Finance Minister Eugene Cox in advance of the new Budget.

Mr. Ezekiel is renewing calls for Government to lower a payroll tax cap that has employees reporting on salaries up to $225,000.

The controversy follows Government taking in $30 million more revenue than estimated during the 2000/2001 fiscal year, which ended on March 31, 2001.

Of that $30 million,there was a $20 million increase in payroll tax receipts for the period and much of that increase has been attributed to changes in the payroll tax structure instituted in 2000 which resulted in hefty increases for international businesses.

In that year payroll tax saw an increase of one quarter of one percent and Government announced payroll tax changes to bring international business under the same payroll tax format as local businesses.

This move saw international businesses having to report on actual payroll amounts rather than an assumed figure of $70,000 - up to a cap of $250,000.

After outcries, Government last year moved the cap down to $225,000.

Mr. Moniz said: “I have said this in the House on numerous occasions for the past two years. Government raised additional money by increasing the ceiling on payroll tax and they were quite correct to treat exempt company and local company employees in the same way.”

Mr. Moniz questioned the wisdom of Government raising the tax rate at the same time as changing the tax structure to reporting on actual amounts.

“Obviously if they are getting more (tax) money and want to reduce the tax burden, they should reduce the rate of tax overall - not change the way certain people are treated.

“The effect of lowering the ceiling means the better off people are getting a break and there is no justice, fairness or equity in doing that.

“What should happen is the rate of taxation should be reduced across the board.”

Mr. Moniz said his calls for reducing the payroll tax rate across the board, rather than lowering the ceiling or cap, has been greeted with silence.

Mr. Moniz attributed this to the “fat cats looking out for their own interests”, and he cited Opposition leader Grant Gibbons as being one “who is looking out for his best interests”.

Mr. Moniz chided this approach, which he said should be “that we have a duty to the people of Bermuda.”

Mr. Moniz stressed that he is not “anti-international company” and added: “I am sympathetic if companies feel the burden, but the way to do this, is to reduce the tax burden overall and privately, I hear from the exempt companies that they agree with there being the lowest possible rate of taxation.

“David Ezekiel is saying the ceiling should be lowered, but that is not equitable,” Mr. Moniz said.

Mr. Moniz said there was no risk of exempt companies fleeing if subject to the same basic taxes as local companies.

Mr. Cox has not revealed what changes to the payroll tax structure may come in the next Budget which is due shortly after Parliament reconvenes on February 8.