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No reversal

Corporation tax policy remains – ince

Government has turned down a request from the Tourism Development Corporation (TDC) for a reversal of tax measures announced in last year’s Budget.

Parliamentary Secretary in the Ministry of Finance and Economic Affairs Senator Jepter Ince told the annual general meeting of the TDC at Accra Beach Resort, Christ Church today, the country was still in a delicate situation and the true gains of the measures were yet to be realized.

Senator Jepter Ince

Senator Jepter Ince

“While we understand the position of the TDC, we must look for solutions that will create win-win situations,” Ince said, following concerns raised about the adjustment announced in the 2015 Budget with respect to allowances and deductions for corporations.

“As was said at the time of the Budget, the adjustment is a response to the decline in revenue from corporation taxes due to developments in the international business sector,” said Ince, adding that Government was also attempting to correct the growing erosion and weakening of the country’s tax base.

He also said the recent change with respect to corporation taxes was consistent with the Government’s fiscal adjustment policy and with best practices in international taxation.

Ince therefore encouraged the TDC to continue its “excellent” work, while assuring that the Freundel Stuart administration would continue to work with all tourism stakeholders to ensure that the island’s product was world class.

However, in an immediate reply, outgoing TDC Chairman Anthony King told the Government Senator that the agency would continue to push for tax allowance and deduction relief.

King, who was succeeded today by Martin Ince after 11 years at the helm, said while he appreciated Government’s financial constraints, “we will continue to make our case”.

Earlier in his feature address, Senator Ince urged the tourism stakeholders to work harder at facilitating investors who see Barbados as a place where they can add value.

“Hence, we must be more efficient in responding to investor concerns and to find workable solutions without compromising values or the rule of law,” he said.

3 Responses to No reversal

  1. Tony Webster January 30, 2016 at 7:05 am

    To hear this honourable gentleman speak ( or shout), one might assume that he is just about to publish the ultimate Text-book on Economics. This being part science; part human psychology; a goodly helping of rank political skills; and the more salient bits also crafted from real-life experiences, one would hope that he also includes a part on the Bimshire Effect: our experiences 2007-2018, and in particular the concept and the reality of diminishing returns, over-taxation; and assorted mis-steps. Indeed, the whole nine yards, cud be better placed in concise two-page leaflet: The Bimshire Economic Miracle: how we survived 2007-2018″ sub-titled “Mistakes That Should Never Be Repeated”. Rule one cud be “Do not shout when in Hallowed Chambers”. Yes, Senator…you can get the Guv. to do the Foreword. Go fo it, Sir.

  2. Sue Donym January 30, 2016 at 10:07 am

    Mr Ince said that government’s corporation tax policy was consistent with international best practices; he means except for many glaring exceptions, I assume.

    This picture must be the look you get when you can skilfully talk out of both sides of your mouth. How does this government official feel having given up to 30 years of heavy concessions to an international hotel chain, while telling local businesses to pay additional and higher levels of taxes?

    How do you have the confidence to give unproven multinationals – no track record in your economy – no tax or extremely low tax levels, while complaining about an eroding tax base?

    Just so you are clear, many of us see this as an insult! The pay-more-to-get-less approach is not impressive. It is understood that sometimes one needs to sweeten the pot to attract investment, but wouldn’t it make sense to maintain even low levels for the big players and allow your existing corporate tax payers and citizens to contribute at a more comfortable rate?

    Someone still needs to explain how a significant reduction in the number of VAT collecting businesses did not help to further weaken the tax base.

    I await the announcements about the MoUs and T&Cs for the latest international tourism partnerships – smelling salts at the ready!

  3. jrsmith January 30, 2016 at 12:03 pm

    Its about time, some one , gather the government ministers up, find a quite spot some where, sit them down and explain, taxes wouldn’t or cant , do anything to get Barbados LTD , out of It economics woes.. they must roll they sleeves up, get they fingers out try and fix the problems, as they are paid to do..

    Or should we ask , Westminster , to send a team across the pond to fix little England, ASAP.


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