Under the theme of "Rebuilding a better Grenada for all," Minister of Finance Anthony Boatswain last week unveiled the 2005 budget, which featured a number of tax measures to help the stricken island repair itself after Hurricane Ivan tore through it last year.
The main objectives of the budget as outlined by Boatswain are to stabilize the public finances of the country by narrowing the deficit on current operations, and facilitate the reconstruction of Grenada’s economy in the "shortest possible time" through incentives targeted at specific sectors.
To this end, the minister announced a number of measures to increase revenue as well as assist citizens in rebuilding their lives.
One of the key measures is a 50% reduction in the tax payable on residential properties and an exemption from the payment of property tax on residential buildings where the tax payable is the lower of $20.00 or less.
Other measures include reduced GCT on alternative energy products and on tyres and brakes, effective as of June 1, 2005. The GCT on new tyres, brakes and brake accessories will be reduced from 25% to 5% and these items would be placed on the Price Control List to ensure compliance.
From July 2005, all workers will contribute to the Grenada Reconstruction and Development Fund for a fixed period of 5 years, as a means of raising local resources to assist in the rebuilding of the country.
The rates of contribution will be 5% of gross income for persons earning up to $EC5,000 per month and 2.5% of the gross income of persons earning in excess of $EC5,000 per month.
The 2005 Budget also details specific rehabilitation programmes for Agriculture, Housing, Tourism, Business Reactivation, Health Care, Education and Training, Physical Infrastructure, Psychological Rehabilitation, Youth Development and Sport Development as well as institutional strengthening in the areas of Disaster Management, Physical Planning and Public Sector Modernisation.
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