According to a recently released IMF report on the Island, appreciation of the US dollar, discrepancies between wage and productivity increases, and foreign trade distortions have all combined to weaken the external competitiveness of Barbados.
In its assessment of the stability of the jurisdiction's financial system, the international body welcomed recent movement towards a recognition of the need to link wage increases to productivity, inflation, and income tax levels, but stressed that:
'The tradeoff between wage increases and tax cuts will need to be stringently enforced, since tax cuts in the absence of sufficient wage restraint will continue to impart fiscal stimulus.'
The IMF also welcomed government plans to rein in the public sector budget, its report revealed.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment