Government announces $300 ‘solidarity payment’ amid strong corporate tax returns

Thousands of Barbadians are to receive a one-off, tax-free Solidarity Allowance of $300 after the government reported stronger-than-expected corporate tax revenues for 2024, Minister in the Ministry of Finance Ryan Straughn announced on Monday.

Referring to Prime Minister Mia Mottley’s first budget speech, Straughn stated: “The prime minister indicated in her first budget speech that as a government we are asking the people of the nation to share the burden and to share the bounty. This government remains absolutely committed to this philosophy.”

Straughn emphasised that while Barbados has maintained fiscal discipline, external economic uncertainties prevent structural changes at this time.

“This government continues to maintain fiscal discipline and notwithstanding the fact that the corporate tax regime performed better than expected in 2024, recent events in the rapidly evolving external environment prevents us from making structural changes as we do not yet know what will happen internationally in the next few months. We must therefore look at other options to ensure that there is a benefit to Bajans from this enhanced corporate tax revenue that we received this year,” he said.

As part of this commitment to “sharing the bounty” with citizens, the government will distribute a one-off Solidarity Allowance of $300, free from income tax, to eligible citizens and residents, according to Straughn.

“Every Bajan over 18 years old, and every person with legal status, who has contributed to the National Insurance Scheme in the last year, will qualify for the solidarity allowance. The National Insurance Scheme will administer the payment of these allowances,” he said.

The initiative follows a similar approach implemented in Guyana in 2024, where hundreds of thousands of Guyanese citizens at home and abroad aged 18 and over received cash payments of approximately 100 000 Guyanese dollars ($964) in response to high oil revenue earnings.

In addition, all National Insurance contributory pensioners; all non-contributory pensioners including those accessing the Special Needs Grant; persons receiving invalidity benefits from the National Insurance Scheme; and welfare clients receiving support will all qualify for the solidarity allowance.

Recognising that some individuals may not fall into these categories, Straughn announced a process for those who have not worked in the last year or are otherwise ineligible under the stated criteria.

He said: “We know that these categories are not exhaustive; there are persons who are not on welfare and others who have not worked in the last 12 months, and are not in any of the groups mentioned above. We will therefore encourage persons who do not fall immediately in any of the above categories to come forward to the designated points across the country that will be advertised, and present themselves. You must bring your national ID card and some proof of address. A due diligence check will be made, and persons will thereafter receive their solidarity allowance.”

The application deadline for people falling outside these categories will be June 30, and an appeals process will be available for grievances.

 (SB)

Key takeaways:

• Thousands will receive a one-off, 

tax-free $300 payment.

• All citizens and legal residents over 18 who contributed to the National Insurance Scheme last year, pensioners, welfare recipients, and those receiving invalidity benefits qualify automatically. • Others can apply through designated centres.

• The initiative mirrors a similar cash-distribution programme implemented in Guyana last year, funded by high oil revenues.