Opposition party in Barbados critical of gov't tax policy
BRIDGETOWN, Barbados (CMC) – An opposition party has warned Barbadians to brace themselves for an increase in taxes following the government’s decision to provide a hefty reduction in corporation taxes for businesses.
In a statement, the United Progressive Party (UPP) said that it was disappointed at the decision announced by the seven-month-old Mia Mottley administration.
Prime Minister Mottley told parliament there earlier this week that her administration would reduce the corporation taxes from 25 per cent to as low as between one and 5.5 per cent and urged the companies to share the benefits with citizens.
She said that the new measure would go into effect on January 1, 2019.
Mottley said that the change was in keeping with a promise to meet the Organization for Economic Cooperation and Development's requirements against base erosion and profit shifting and that there would be dialogue to discuss “principles that will underpin the further reform of our tax system”.
She said that in developing the proposed schedule of rates, consultation was carried out with tax experts and international and domestic companies.
But the UPP has called for the government to share its fiscal impact study, saying that the population should be made aware of how the proposed changes would affect its revenues.
It warned that the new measure could result in Barbados losing revenue from firms that originally paid taxes at the rate of 25 per cent.