Barbados To Reduce Import Duties

by Amanda Banks, Tax-News.com, London

15 August 2001

Barbados Prime Minister Owen Arthur announced on Friday that the country's import duties, which at the moment stand at around $135 million, are set to dwindle to less than $20 million over the next four years.

The Prime Minister made the announcement as debate concluded on his economic and financial proposals, which were presented to the House of Assembly last Wednesday. He was responding to recent calls from the leader of the opposition, David Thompson, to ease high domestic taxation in Barbados. However, Mr Thompson has since criticised the content of the financial and economic statement, saying that it does not 'represent a clear path to the future.'

Mr Arthur explained to the House of Assembly that the import duties would be partially scrapped due to trade liberalisation; Barbados is currently preparing to participate in the Free Trade Area of the Americas, but as a condition of entry, it will be forced to relieve at least 90% of its imports from duty.

Despite having promised that he would review all corporate and personal tax allowances with a view to rationalising them from 2003, the Prime Minister condemned the many and varied suggestions which have been flying back and forth on Barbadian radio and in the press since his economic and financial statement, as unrealistic. If the government were to follow the advice being given, he explained, it would have to waive over $500 million in taxes, which would result in an authority so miniaturised that the citizens of Barbados would be forced to pay for education and healthcare.

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