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BSE calls on Minister Sinckler for clarification

The Barbados Stock Exchange wants Minister of Finance Chris Sinckler to clarify some of the measures introduced in his 2012 Budget.

In his Financial Statement and Budgetary Proposals delivered on June 26 in the House of Assembly Sinckler announced some tax incentives to spur activity on the BSE junior market.

That organisation has now announced that it has asked the minister to explain some aspects of the measure. The BSE has formally written minister Sinckler for clarification of the tax incentives outlined and the requirements,” the BSE said in its 2012 half year report released today.

Specific measures referred to including the provision of “a fiscal incentive for companies to list on the Junior Stock Market, where firms that choose to list on the BSE’s Junior Stock Market will be provided with a tax incentive for 10 years.

These incentives included an income tax holiday on 25 per cent of the company’s operation for the first five years of the ten year incentive period, a full income tax holiday for the first five years of the 10 year incentive period, a half income tax holiday for the second half of the incentive period, an exemption from withholding tax on dividends and other distributions from companies listed on the junior market, and an exemption from transfer tax on transfers of shares in Junior market companies.

BSE officials said they were “very pleased to see that recognition of the importance of the Capital Market in Barbados has been given, especially the assistance given to further develop the Junior Market of the BSE”.

“The tax incentives offered should make equity financing a far more attractive option than the traditional debt financing regime currently prevailing in Barbados. Supporting the Junior Market’s development also further emphasises Government’s commitment and support for SMEs and Entrepreneurs as the main drivers of economic activity in an economy under duress from the effects of a prolonged recession,” the report stated.

“The BSE formally wishes to express its gratitude to the Government of Barbados for providing it with the opportunities to further develop and enhance the investment and financing opportunities for investors and issuers of equity securities.” (SC)

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