The Barbados Private Sector Association (BPSA) is calling for an urgent review of the Municipal Solid Waste Tax, warning that it will hurt the country’s productive sectors.
In a statement issued today, association boss Alex McDonald said the tax will deal a severe blow to the country’s tourism industry, explaining that “the sums to be paid are expected to place a heavy and punitive burden on this sector particularly due to the high value of the property involved.”
According to reports, the BPSA has been “inundated with objections to the tax”, including from private citizens.
McDonald pointed out that while Government has not had the desired success in reducing its expenditure over the past years, it has introduced more taxes to generate revenue.
And according to him, statistics clearly show that Government tax revenue does not necessarily increase as the tax rate increases, leading to the cycle of more tax measures being introduced with business and consumers being negatively impacted.
“What the private sector has said in the past and wishes to reiterate now is that the level of taxation in our economic climate has the cumulative effect of damping consumer demand and this is ultimately stifling economic growth. The tax as levied will increase the cost of doing business thus reducing the island’s competitiveness,” McDonald warned.