Even worse times are ahead for Barbadians under the Democratic Labour Party (DLP) government.
This was the general consensus after Minister of Finance, Chris Sinckler, announced harsh new taxation measures in delivering his annual Budget (Financial Statement and Budgetary Proposals) on Tuesday, May 30 in the House of Assembly.
Barbadians were catspraddled as Sinckler singled his intention to dig even deeper into their pockets as the DLP government seeks to balance its budget.
The following are some of the key points announced by Sinckler.
- The National Social Responsibility Levy will move from two per cent to ten per cent from July 1. This will result in “increased revenue of $291 million for a full financial year and $218 million for the remaining nine months of the current fiscal year”. This levy was introduced last September and was imposed on goods imported into Barbados as well locally manufactured items. The NSRL was initially introduced to finance the burgeoning cost of public health care and to assist with maintaining a clean environment.
- Online shopping is also going to cost a bit more. From July 1, a two per cent foreign exchange commission will be charged on all sales of foreign currency. This will apply to wire transfers, credit card transactions and the sale of foreign currencies over the counter. This measure is expected to raise an estimated $52.5 million over the remainder of the current financial year and $140 million over a full financial year.
- The excise tax on gasoline will be increased from 74 cents to 99 cents, while that on diesel will move from 20 cents to 44 cents. As a result gas will now retail for $3.05 per litre and diesel $2.25. At present gasoline retails at $3.00 and diesel at $2.15. This will take effect from July 1, but Sinckler said it would not be felt by drivers at the pump.
- Taxpayers will be able to benefit from a waiver of penalties and interest on land tax and Value Added Tax during an amnesty from June 1 to November 30, 2017. There’s also a plan to reduce the backlog of VAT refunds owed to businesses and personal income taxes.
- Government was in discussion with the Central Bank and the National Insurance Scheme regarding a debt re-profiling programme. This means the National Insurance Scheme and the Central Bank could agree to accept lower interest rates on some of the government securities they hold. Savings of 70 million dollars are expected from such a move.
- Cabinet has approved an across the board ten per cent cut in the approved estimates of expenditure for 2017-2018 financial year. This is not expected to displace workers or disrupt the provision of vital social services.
- Hilton Hotel to be sold for US$100 million.
- Duty-free shopping zones promised almost a year ago will be launched by August this year.
