BUDGET 2016: Economist endorses Shaw's tax measures

Economist Dr Damien King described the government's new tax measures as a good move in shifting the tax burden.

It means that the self-described logical thinker will refrain from blasting the administration on his popular twitter feed for the moment.

Government imposed new taxes in order to finance tax exemption for PAYE workers.

"The tax burden has been shifted from overburdened formal sector workers to workers who evade income tax," tweeted King on Thursday.

Government plans to remove income tax on salaries up to $1.5 milion in a two-year phased plan.

"The $1.5 million threshold has been financed by a shift to consumption taxes, primarily on petrol and travel. This is undoubtedly a good move," added King.

To finance the plan, the Government expects to impose a five percentage  higher income tax to 30 per cent on income earners above $6 million; gas tax of approximately $7 per litre;  $2 additional tax on sticks of cigarettes; and hiking departure tax to US$35 and denominating it in US currency