Dominican government to review minimum wage, reduce corporate taxes

ROSEAU, Dominica, CMC – Dominica's Prime Minister Roosevelt Skerrit on Wednesday said that the government will undertake a further review of the island's minimum wage and will also be moving towards reducing corporation taxes this year.

“I would say to you with respect to the economy, our revenue for the first six months for the financial year 2024-25 is better than the same period 2023-24,”  Skerrit said during a live interview with the state-owned DBS radio.

'Our revenues are doing much better in this financial year so far than it did in the previous financial year which is a sign that money is being spent in the economy.

“We have seen an increase in corporate tax in Dominica and this is why we are looking at in 2025 addressing the corporate tax and reducing it from what it is now 25 per cent…so  that we can keep more money in the private sector's hand and hope they can invest more so we can increase the tax base of the country,” Skerrit told radio listeners.

He said in 2025, his administration is looking at a “further review of the minimum wage so to allow persons who are reliant on the minimum wage payment schedule to be able to be given a better pay so as to be in a better position to withstand the increase in the price of goods and services in Dominica”.

Skerrit acknowledged that the cost of goods and services had increased over the past few years, but said that this was not a situation confined to Dominica alone, but to many countries across the globe.

“…go to Australia, they will say the same thing, go to China they will say the same thing. Every country in the world you go to now, people will have complaints and legitimate ones. The reality is the cost of goods on the shelves across the world is a major pre-occupation with every single government and every single citizen”.

He recalled during the last presidential election in the United States, there were calls for price controls in a free market economy.

“Obviously, the candidates had to backtrack because there is a backlash on this …contrary to the spirit of a free market economy and in any event it is very difficult to have price control on every item on the shelf.

“So it is a huge challenge for this country and what we try to do in Dominica …is not to impose any real direct taxes on people, ensure that we continue to invest in those major projects so that people can have work.”

Skerrit said that the government would continue to invest in housing to make it more affordable to Dominicans.

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