Owen Arthur Urged To Cut Domestic Taxation In Barbados

by Amanda Banks, Tax-News.com, London

10 August 2001

Although Barbados has built a reputation for itself as a tax haven for non-resident multinationals and individuals, Opposition spokesman for Economic Affairs, Senator Clyde Mascoll believes that domestic taxation is too high, and has publicly urged the Prime Minister to give Barbadian taxpayers some relief.

Speaking ahead of Mr Arthur's second Financial State of Government's Economic and Financial Policies speech earlier this week, Senator Mascoll said that the reduction of taxes for the average Barbadian citizen would have a beneficial effect on the local economy, as consumers would have more spending power, and business would benefit as a result.

' It is my contention that high taxation and the income protocol are negatively affecting the business community, because people need to spend for business to turn over,' he told the Barbados Nation News on Tuesday. Senator Mascoll recommended a reduction in the top marginal rate from 40% to 35%, and a similar reduction to the corporate tax rate. He also said that he would pull down the bottom rate from 25% to 20%.

Owen Arthur departed from tradition last October when he announced that he would not present budgets as such, but would instead issue yearly economic policies, some not dealing with tax and expenditure items.

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