No new taxes coming for Barbadians

For the time being, Barbadians will not be burdened with additional taxes.

That assurance has come from Prime Minister Mia Mottley, who said despite the COVID-19 pandemic’s crippling effect on the economy, she believed the island was positioned to recover without the need for increased taxation.

Mottley, who is also the Minister of Finance, Economic Affairs and Investment, delivered the welcomed news this afternoon as debate on the 2021/2022 Estimates of Revenue and Expenditure continued in the House of Assembly.

The Prime Minister said corporation taxes moved from $385 million in the last financial year to $502.3 million this year, which helped the country to get through the COVID-19 pandemic despite losing $2 billion in economic activity.

However, she revealed there was a “significant contraction” in Government’s income taxes collected, which declined from $492.9 million to a projected total of $303.7 million for this year, while Value Added Tax (VAT) fell from $1 billion to a projected $700 million.

“…I have not come here today to raise any taxes, as we know this is really the Budget, but in spite of everything that we’ve done we have taken a decision internally that we believe so long as we can get economic activity moving again in this country.

“The tax structure that we have should be adequate to carry us through. What has bridged us is the fact that the confidence we have created internationally has allowed others to step forward and provide the funding to build that bridge such that we do not have to go back to Barbadians and to inflict taxes at the very time that they are not in a position to receive them or pay them,” Mottley said.

“To that extent I say to you, confidence is the most important currency that this Government has literally traded in by being able to show people that when we say we will do X we do it, particularly in our economy and financial affairs and that in so doing and so delivering we have been able to garner the confidence necessary such that I do not have to come back and address the tax structure at this point in time and certainly not for the reason of just bridging the gap.

“If we go back at taxes it should be to enhance efficiency and not just simply at this point to continue to bridge the gap between what we earn and what we spend. It has not been easy but we believe this is the right way to go,” the Prime Minister added.

(randybennett@barbadostoday.bb)