Owen Arthur Urged To Cut Income Tax

by Amanda Banks, Tax-News.com, London

06 November 2001

Amid calls for a reduction in income tax to boost the Barbadian economy, Prime Minister Owen Arthur has attempted to reassure the island's inhabitants that the economy is not in crisis.

Addressing the House of Assembly last week, Mr Arthur explained: 'When I say I don't feel a sense of crisis, it is because I strongly believe that we will emerge from this situation stronger and more resilient.' This follows an optimistic speech at the 63rd annual conference of the Barbados Labour Party, in which the Prime Minister stated that the country is better placed to deal with the current economic crisis than at any point in the past.

However, many do not share Owen Arthur's optimism, and his rescue plan for the Barbadian economy has been condemned as 'purely cosmetic' window dressing. Critics say that although the September 11th atrocities have undoubtedly had an adverse effect on the economy, the problems were in place before those events, and that in any case measures suggested to rescue specific sectors, such as the tourism and financial services industries, do not go far enough.

Alternative measures to stimulate the economy, they suggest, should include a reduction in income tax, and a freeze on the deposit rate in order to encourage saving.

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