BRA collects just over $2 billion in taxes

For the fiscal period ending March 31, 2021, the Barbados Revenue Authority (BRA) collected just over $2.24 billion.

However, says the Revenue Commissioner at the BRA, Louisa Lewis-Ward, this amount is down by over $208 million in comparison with the previous year, and she attributes the decrease to the COVID-19 pandemic and a rapidly slowing economy.

Mrs. Lewis-Ward made the comments  Thursday during a virtual media conference. She told reporters: “This decline of eight per cent is primarily attributed to a decline of $192 million in VAT; a decline of $117 million in income tax; and an excise tax decline of $81 million.

“Secondary impact was felt with declines in property tax, withholding tax, fuel tax and room rate levy of $24 million, $17 million, $15 million, and $14 million, respectively. I guess the levy reflecting the impact that COVID has had on the tourism sector.  Corporation taxes performed well, buffering some of the negative impact and without that, the decline would have averaged about 20 per cent.”

The Revenue Commissioner pointed out that VAT continued to be the largest contributor to the tax revenues and said therefore the BRA’s policy around this tax would be carefully monitored in the upcoming period.

She noted that policymakers had signalled no intention to raise taxes in this challenged environment. She stressed that Barbadians will therefore need to work hard and be extremely innovative to ensure a recovery, while saying that a rebound of the tourism sector was key. (BGIS)