Barbadian Government Seeks To Cast Tax Net Wider

by Amanda Banks, Tax-News.com, London

21 October 2002

As debate was wound up on a bill giving legal effect to amendments to the Income Tax Act outlined by Barbadian Prime Minister and Finance Minister, Owen Arthur in his 2001 Financial Statement, concerns were once again expressed regarding the size of the jurisdiction's informal sector.

Speaking last week, Minister of Health, Senator Jerome Walcott stressed the need to bring those earning more than $15,000 per year but not filing tax returns into the tax net.

This echoes remarks made by government backbencher and chairman of the National Insurance Board, Sir Henry Forde, who last Tuesday: 'estimated that there could be 30,000 persons in the informal sector who do not make any contributions to state funds, but who reap all the benefits tax and national insurance paying persons do.'

Among the key provisions approved by the Senate last week, according to the Barbados Daily Nation, were a $100 penalty for late filing, and a reduction of the corporation tax rate from 40% to 37.5%.

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