Barbadian Taxes Will Be Slashed By $210 Million Under DLP Govt

by Amanda Banks, Tax-News.com, London

27 March 2003

The president of the Democratic Labour opposition, Clyde Mascoll, has promised Barbadians $210 million worth of tax cuts over the first five years of a DLP administration.

Speaking to the Upper House in the 2003/2004 estimate debate Mascoll said that the cuts would encompass income and corporate tax, land and property taxes as well as VAT in a bid to give the territory a much needed economic jolt. The aim was to reduce the nation's total tax take from 40 cents in the dollar down to 35 cents explained Mascoll.

The Opposition leader calculated that the package of tax cuts would release about $210 million back into the economy, or $40 million per year over the five year time span of the plan.

However, Mascoll warned that the country could not benefit from such an injection of cash every year, and further stimulus methods would have to be addressed according to which sector of the economy was in need of them most.

Another important reason for the dramatic tax cuts said Mascoll, was that it would bring Barbados more into line with some of its regional competitors. He cited recent examples of business leaving Barbados in favour of the more tax friendly Trinidad and Tobago to substantiate his argument further.

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