Within the next four months taxpayers are to begin receiving income tax refunds owed to them from as far back as 2011, Prime Minister Mia Mottley said this evening in Parliament during her Budgetary Proposals.
She announced: “Starting the first of July, individuals who are owed personal income tax refunds for the years 2011 to 2016 will receive up to $1,000 in cash.
“That will repay approximately 63,000 Barbadian households in full.”
She said that 74 per cent of the 85,000 households which are owed will receive the majority of the monies owed to them by Government.
Mottley said while the undertaking would cost Government $39 million, it would assist in meeting its debt reduction targets.
The Prime Minister said companies which were owed VAT refunds or corporate income tax refunds for the similar period would receive up to $10,000 in cash.
She said: This will repay in full, 1,700 companies in Barbados or 71 per cent of the companies to whom we owe refunds. This one off payment will cost us $10 million.
“The remaining balances that will not be settled at this point in time will be covered in 42 equal monthly installments beginning from May 1 of this year, unless of course cash becomes available sooner and we can advance the payments as we have done in these instances.”
Mottley said that in total, the non-reimbursement of overpayments of VAT and corporation taxes between 2011 to 2016 had reached a staggering $166 million. But, she vowed that Government would also repay that.
Mottley said pensioners were also set to receive some monies as part of the country’s domestic debt restructuring.
She declared: “Remember the first lump sum they got $20,000 and we said that they would receive a second payment of $30,000. For those who had bonds that were up to $50,000, they will now receive that second lump sum of $30,000 each on March 29. Promise made, promise kept.”