Budget offers land tax relief
Wednesday August 17 2011 | 06:22 AM

BARBADIANS have been spared the burden of higher land taxes.

This along with an energy grant to disabled persons, an amnesty to taxpayers under the Waiver of Interest and penalty programme offered by revenue collecting agencies, and support to key economic sectors including the Cultural Industries Sector, form the core of the three-hour Budget presented yesterday by Finance Minister, Christopher Sinckler.

In addition, he detailed support to Tourism, Agriculture, International Business, and Cultural Industries, the high point of the latter will be a guarantee to borrow $50 million starting next year to promote musicians, artists, designers and chefs.

Amounts will be borrowed in $10 million tranches starting in 2012.

Dealing specifically with the relief from land taxes, the Minister said that the first $150 000 which is exempted from tax, will be increased to $190 000, that of $400 000 in value will be raised to $500 000, and that of one million will be raised to $1.2 million.

According to the Minister, “This reduction in land tax payable for the 2011-2012 tax year is not expected to have an impact on taxes collected by the Commissioner of Land Tax, compared to 2010/2011, but will allow land and home owners to forgo increases in taxes for the next period.” 

Additionally, businesses whose filings with the Inland Revenue Department and VAT Division and whose compliance with NIS and Land Tax are up to date or who have in place arrangements to settle their arrears, will be allowed to write off 150 per cent of conversion to alternate energy over a five-year period.

However, the Minister in an attempt to get greater compliance by taxpayers said that from Income Year 2011 the fee for late filing will be increased from $100 to $500.

In terms of sectoral support, Mr. Sinckler said that Government had agreed with the Barbados International Business Association that in the coming months there will be a focus on a number of pieces of legislation including Societies with Restricted Liabilities Act to effect mergers between these entities, and the Securities Act.

He also revealed that his Ministry had invited the Attorney General’s Office to work alongside the International Business Unit to devise a multi-year licence. 

In the area of Agriculture there is to be a rebate to the poultry sector, fruit and vegetable farmers will be given assistance to acquire cost effective equipment for production and application of disease and weed free organic matter, and lower interest rate to those benefiting from the Agricultural Development Fund.

Sinckler said that the housing programme whereby persons can acquire the NHC Units. However, he promised legislation to bring closure to the issue where extensions to Government housing units were holding up the sale of those units to tenants.

The Minister said that while Government would have liked to offer every Barbadian everything they might desire to see, fiscal constraints prevented this. However, he said the Budget is another instalment in the Plan of Team Barbados and is geared towards bringing Barbados out of the recession.

Saying the plan is working, the Minister acknowledged that while they “lost an early wicket at the top of the order, the middle is holding ground and runs are becoming to come.” 

He also said that the economy is growing at a rate of two per cent. “The economic cold is not gone yet and while some symptoms are clearing would be foolhardy to let our guard down,” Sinckler added.