BIBA seeks diplomatic help to address Brazil’s blacklisting of Barbados

As Barbados seeks to deepen bilateral trade relations with Brazil, the global business community here is raising a concern that Bridgetown remains on the South American country’s tax blacklist, limiting the opportunities for some global business operations here.

Executive Director of the Barbados n (BIBA) Carmel Haynes, who raised the concern on Wednesday, said the global business community was seeking diplomatic support to get Barbados removed from that list.

In fact, Haynes made a direct appeal to Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds, at the opening of a consultation between Ministry of Foreign Affairs and Foreign Trade officials and representatives of the private sector.

“Given, as you mentioned, the strategic push being made in Brazil, I have also flagged that currently, we are on the tax blacklist for Brazil,” said Haynes.

“This is something that has caused some concern to our members. It has been drawn to the attention of Invest Barbados and the International Business Unit, but if we can also get diplomatic support from the Ministry of Foreign Affairs to be able to help Barbados move off this blacklist, this would be very helpful to our membership, especially those who are looking into shipping, logistics and gas production,” she said.

The Federal Revenue of Brazil has long considered Barbados one of several countries with favoured taxation and privileged tax regimes.

Such countries and territories, it said, do not tax income or have a tax rate lower than 20 per cent, or have legislation that does not allow access to information related to the composition, corporation of legal entities or their ownership.

Barbados’ current corporate tax rate is between one and 5.5 per cent.

In an immediate response to the blacklist concern, Symmonds, who served as Minister of Energy and Business Development with responsibility for International Business last year, said he became aware of the issue at that time.

However, he gave the assurance that the concern was being addressed, adding that it was “a work in progress”.

“The fact of the matter is that having now changed seats, if you will, I can assure you that the diplomatic outreach has been undertaken,” said the senior government minister.

“You would be aware that Brazil had a change in political administration at the very end of December to the start of this year.

Subsequent to that, I met with President Lula [da Silva], with Prime Minister Mottley and we raised this matter. He has assured us that his understanding of it is that the tax authorities in Brazil may not quite comprehend the way in which our system works and that there may just be a lack of synergy. This has to be something that we work out and wrestle to the ground,” said Symmonds.

He assured the global business community here that he would be meeting with President da Silva in a matter of weeks, at which time he would be raising the matter again.

“So please, treat it as a work in progress,” said Symmonds, as he reminded the private sector representatives that it was the government’s intention to create greater linkages between Guyana and Brazil especially in the area of agriculture. (MM)