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Prime Minister Mia Mottley announced a tax-free budget which she said would help to secure the Barbados of Today and Barbados for Tomorrow. She made clear the island was doing well but must do even better.
“We can remain comfortable at our previous rates of growth which were 2 1⁄2 to 3 per cent before the lost decade of 2008 to 2018 of zero percent , or we can set our sights at achieving growth of 4 to 5 per cent, which will enhance our chances of building prosperity for as many Bajans as possible, for as many future generations as possible.
“To change our trajectory to higher levels of growth will require effort and investment from all sectors, with many individuals and entities playing their part and not simply the Government. We accept that the Government must continue the exercises to remove red tape and to continue to deconstruct and reconstruct as many systems and policies as possible. But we must also have the same efforts being undertaken in the private sector and in all other spheres of activity within the country,” Mottley said.
Here is a summary of the Fiscal & Economic Measures 2024
- With effect from October 1, 2024, the categories of persons living with disabilities accessing non-contributory old age pension will be expanded to include the following conditions: cerebral palsy, advanced multiple sclerosis and autism as well as the inclusion of minors with these conditions.
- The special needs grant for minors with these conditions will be 50% of the value of the non-contributory old-age pension, whilst it would be 100% for adults.
- With effect from April 1, 2024 until September 30, 2024, the VAT reduction on electricity bills where residential customers will pay only 10% VAT on the first 250 kilowatt-hours of electricity instead of the usual 17.5% rate.
- With effect from April 1, 2024 the ranks of Station Sergeant, Sergeant and Detectives in the Barbados Police Service will be included on the Schedule of the Public Officers Loan and Travelling Allowance.
- With effect from June 1, 2024, five (5) personal days will be provided to public servants to deal with emergent personal and family matters.
- With effect from April 1, 2024, a Criminal Investigation Allowance will be introduced to reflect the serious nature of the work being done within the Service.
- A Teaching Service Commission, supported by a Secretariat, will be established by the Ministry of the Public Service during fiscal year 2024/2025.
- Effective September 1, 2024, 22 Master Teachers will be assigned across secondary schools to support teacher effectiveness and improve instructional quality.
- Community Resilience Programme: with effect from April 1, 2024 the waiver of import duty and VAT on the purchase and installation of generators and transfer switches at residential homes irrespective of the fuel type for a further 2 years.
- Community Resilience Programme: with effect from April 1, 2024 a waiver of VAT will apply on the sale and installation of water tanks, septic tanks and electrical pumps and pressure tanks for residential properties for 2 years.
- Community Resilience Programme: with effect from April 1, 2024, a 20% rebate will be provided on the assessed land tax for residential properties that suffer from perennial flooding and associated damage, provided that they have valid home insurance with flood insurance coverage.
- National Development Strategy: With effect from April 1, 2024, an additional 25% non-refundable tax credit is introduced to boost the 50% research and development tax credit, for projects related to the Ocean and to the Greening of the economy.
- National Development Strategy: With effect from April 1, 2024, a 50% refundable tax credit is introduced for projects resulting in net zero emissions in Barbados.
- National Development Strategy: With effect from April 1, 2024, a 50% refundable tax credit is introduced for investments in projects identified and approved by the Government in the context of our National development strategy.
- National Development Strategy: with effect from April 1, 2024, a 75% tax credit for educational and life skills facilities for persons with special needs.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for centres for gifted persons.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for the development elderly care facilities and hospices.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for centres offering artificial intelligence, coding, robotics and digital training.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for the purchase of local art up to $1 million for the outfitting on investment projects.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for the development of entertainment and sports venues.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for laboratories.
- National Development Strategy: With effect from April 1, 2024, a 50% tax credit is introduced for beach rehabilitation, coral reef restoration and other marine conservation works approved by the Coastal Zone Management Unit.
- National Development Strategy: With effect from April 1, 2024, a 100% tax credit is introduced for local companies reengineering their business processes and digital upgrades to be offset against income tax in the same income year of completion up to June 30, 2025.
- A new national data center will be established.
EMBARGOED until Monday March 18. 2024 @6:00pm
- Tax Expenditure Management: From January 1, 2025, all beneficiaries of tax concessions, rebates or other exemptions that have been issued prior to the year January 1, 2005 will have to reapply through the Ministry of Finance.
- Tax Expenditure Management: All beneficiaries of concessions granted between 2005 and 2010 will be required to reapply from January 1, 2027 whilst those issued from 2011 onward will be required to reapply as current concessions expire.
- Tax Expenditure Management: To ensure compliance with the purpose for which concessions were granted, in every case where an infraction is not remedied in 90 days then the following will be introduced from January 1, 2025:
- ● 1st Infraction: the beneficiary of the concession will be allowed to claim a waiver of up to 75% of the assigned duties and pay 25% of the prescribed duties for a period of 3 months.
- ● 2nd Infraction: the beneficiary of the concession will be allowed to claim a waiver of up to 50% of the assigned duties and pay 50% of the prescribed duties for a period of 6 months.
- ● 3rd Infraction: the beneficiary of the concession will be allowed to claim a waiver of up to 25% of the assigned duties and pay 75% of the prescribed duties for a period of 9 months.
- ● 4th Infraction: the beneficiary’s status will be revoked and be required to pay 100% of the prescribed duties for 12 months before they could apply again.
- Tax Expenditure Management: From April 1, 2024 new investments exceeding capital expenditures of $200 million will be provided with a time frame of 20 years and will be capped at an annual aggregate concession level of up to $1 million.
- Tax Expenditure Management: From April 1, 2024 new investments with capital expenditures of $100 million up to $200 million will be provided with a concessions time frame of 15 years and will be capped at an annual aggregate concession level of up to $750,000.
- Tax Expenditure Management: From April 1, 2024 new investments with capital expenditures between $50 million up to $100 million will be provided with concessions for a time frame of 10 years and will be capped at an annual aggregate concession level of up to $500,000.
- Tax Expenditure Management: From April 1, 2024 new investments with minimum capital expenditures of $25 million up to $50 million will be provided with a time frame of 5 years and will be capped at an annual aggregate concession level of up to $250,000.
- Tax Expenditure Management: The Ministry of Finance will also establish a Monitoring and Enforcement Unit to work with the other relevant ministries and agencies to ensure that the public purpose for which tax concessions are granted is adhered to.
- The Ministry of Finance will modernise the funds and asset management legislation.
- The Ministry of Finance to introduce Transfer Pricing legislation to protect the interest of consumers.
- The Economic Substance Act will be amended to reduce reporting obligations.
- The Crown Lands (Vesting and Disposal) Act will be amended to provide that all lands transferred from the State shall have indefeasible title.
- The Government will begin the process, supported by its international development partners, of engaging in direct negotiation with international suppliers of storage systems to procure storage at the most competitive international pricing.
- The Government will initiate a comprehensive program aimed at identifying the most feasible strategies for the conversion or utilisation of all illiquid and derelict assets.
- A Special Purpose Vehicle, Barbados Property Holdings Inc. which will be responsible for raising the finance to purchase, refurbish and maintain properties for the Government.
- The Government will embark on an initiative to diversify its investment portfolio.
- Dairy Farm Assistance: An increase in the rebate on purchase of cows from 50% up to a maximum of $4,000 to 80% up to a maximum of $6,400 per cow to assist them in this purchase. Maximum total costs of $2,048,000.
- Dairy Farm Assistance: A livestock emissions rebate of 45% on the purchase price of hay for three (3) years. Maximum annual cost $528,255.
- Dairy Farm Assistance: An increase in the 1999 rebate on establishing pasturelands from $202 per acre to $1,000 per acre would allow the farmers to upgrade and maintain their pastures and reduce their dependence on purchased hay. Estimated maximum annual cost of $446,000.
- Dairy Farm Assistance: A rebate of 60% up to a maximum of $40,000 on forage harvesters and trailers and other harvesting equipment to assist farmers in upgrading their forage operations, reducing their costs. Estimated maximum annual cost of $200,000 for two (2) years.
- Dairy Farm Assistance: To offset costs and ensure farmers are able to replenish their stock on a yearly basis, a young heifer replacement incentive of $1,000 per heifer. Estimated maximum annual cost of $250,000 for four (4) years.
- Dairy Farm Assistance: To assist farmers in instituting and repairing this infrastructure, it is proposed that the 2006 rebate on livestock housing be increased from 25% up to a maximum of $60,000 to 40% up to a maximum of $60,000. Estimated maximum annual cost of $240,000 for two (2) years.
- Dairy Farm Assistance: To stimulate dairy farmers to invest in upgrading their operations to innovative and digital technologies, a rebate of 60% up to maximum of $60,000 is being recommended. Estimated maximum annual cost of $240,000 for three (3) years.
