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Barbados government to tax cell phone use

Published:Thursday | December 17, 2015 | 12:27 PM

The Barbados government has introduced legislation amending the Value Added Tax (VAT) to allow for a 22 per cent tax on voice and other transmissions from cell phones.

Finance Minister Chris Sinckler says the tax will take effect on January 1, next year.

Sinckler says the tax will raise Bds$14 million annually that would go towards funding university scholarships.

He says the proposed changes are meant to increase the efficiency of tax administration, provide for the imposition of Value Added Tax on certain mobile services and enhance the enforcement provisions in the Act and for related matters.

The finance minister says the range of services to be covered by the new tax includes the use of the Internet and other transmissions that facilitate email, WhatsApp, Skype and much more.