PM assures no tax increases

Barbadians have been assured by Prime Minister Mia Amor Mottley that Government will not be raising taxes to bridge the gap between projected revenue and expenditure during the 2021-22 fiscal year.

The Minister of Finance told the House of Assembly this morning that Cabinet had taken a deliberate decision that even though there has been a significant decline in income tax revenue the current tax structure will remain in place.

Instead, Government intends to accelerate its measures to stimulate the economy rather than impose new taxes on Barbados when they don’t have the capacity to absorb it. If there are any changes to the tax structure, she said, it will be for the expressed purpose of improving efficiency.

According to the Prime Minister, Value Added Tax receipts this year will drop to $700 million from $1 billion last year, while income tax is projected to drop from $492.9 million in the fiscal year 2019-20 to $303.7 million by the end of the current fiscal year.

Even with this level of decline staring it in the face, the Government still kept its commitment to pay out $62.6 million in tax refunds to Barbadians.