$40.5 million coming in reverse tax, income tax refunds

Close to 45 000 Barbadians awaiting income tax and reverse tax refunds will start getting them from as early as Thursday.

A day after it was announced there would be no VAT-free day as many were hoping for, Minister in the Ministry of Finance, Economic Affairs and Investment Ryan Straughn said in a statement that the ministry had given the Barbados Revenue Authority (BRA) approval to disburse $19.4 million for the Reverse Tax Credit to 14 200 Barbadians, while more than 30 000 will receive Income Tax Refunds, all for income year 2022.

Regarding the Reverse Tax Credit, Straughn said each recipient will receive $1 300, and those who have made arrangements for direct deposit will receive these refunds from Thursday.

“Despite our best efforts, there are still approximately 2 808 persons for the Reverse Tax Credit who have not provided the BRA with banking information,” he said. “Please note we have made arrangements with the Postal Service to have these delivered over the next few days. I continue to urge Barbadians to help us deliver services easier to you.”

A total of $21.1 million in Income Tax Refunds will be paid to 30 427 people, most via direct deposit, Straughn said.

“Approximately 45 000 will benefit from these refunds which we believe is most beneficial to Bajans at this time,” he said.

The announcement came just over 24 hours after the ministry issued a brief statement indicating that while there had been public speculation about a VAT-free shopping day in the works this Christmas, that would not be forthcoming.

“Due to numerous social media campaigns and other media commentary which have contributed to heightened expectations of a VAT-free holiday, potentially leading to a slowdown in actual economic activity, the Ministry of Finance advises the public and the business community to conduct their business with no such expectation,” it said. (BT)