The government’s strategic shift from direct to indirect taxation to lower the tax burden can only work if professionals play their part, Minister in the Ministry of Finance and Economic Affairs Ryan Straughn has told accountants.
In a speech to the Institute of Chartered Accountants of Barbados (ICAB) Annual Tax Update at the Lloyd Erskine Sandiford Centre on Tuesday, he said business professionals’ collaborative efforts in promoting public policy both domestically and internationally were critical.
He also urged professionals to advocate for the country’s right to set its tax policies and to embrace ongoing reforms as crucial for economic growth.
“I urge all of you not to fear the reforms that are being contemplated, but understand that we are doing these reforms as a necessary component . . . necessary, but not sufficient,” the minister told the forum. “Sufficient is each of us getting out of Barbados and trying to find more business to work with to expand the pie. That is my critical message to you.”
Straughn also sought to link public policy in a wide number of areas to tax policy as he called for professionals for their support – “the lawyers, the accountants, engineers, all those people who are specifically involved in areas to aggressively accompany the government on this path to ensure the idea of substance – that there isn’t any business in Barbados that isn’t substantive”.
“People come to Barbados and one of the things that they always say when it comes to Barbados, is the workforce is one of the key reasons . . . and therefore there is no separation between the tax policy and the public policy,” he added.
Straughn addressed the challenges posed by international bodies such as the Organisation for Economic Cooperation and Development (OECD), the Paris-based club of the world’s richest nations which has persistently criticised Barbados as one of the world’s tax havens that preempt tax revenue from rich multinational corporations. He emphasised the importance of data and information exchange and underlined the need for continuous political engagement, particularly with European countries, as Barbados strives to maintain its standing in international forums.
(RG)
