The DLP Tax Promises

The following are the measures proposed in the Democratic Labour Party Manifesto. The proposals in the main are general so that the new Administration still needs to flesh out some of them further. Some proposals might already be in existence and therefore it is necessary that a review of the precise proposals should be undertaken.

Providing incentives to new and existing small players in the retail & distributive sector.

Forty (40) percent of all Government procurement requests for goods & services to be reserved for small and medium sized enterprises.

Expand the basket of goods significantly on which VAT would be removed including basic items and foods to promote good health.

Removal of VAT on utilities for households and businesses.

Removal of VAT on buiding supplies on houses valued up to $400, 000.

Waive duties and VAT on training and sports eqipment.

Increase the deduction for mortgages on houses up to $20, 000 per year.

The lowering or removal of tariffs on goods at ports of entry.

Waive duties on transport facilities for Sports Organisations.

Offer tax deductions on businesses that sponsor sports.

What the BLP would have Done

The following sets out most of the tax measures that the Barbados Labour Party proposed in its Manifesto for the 2008 General Election:

The reverse tax credit (for individuals earning under the taxation threshhold: the proposal was to widen the eligibility for this credit by raising the income threshold from $13, 000 to $18, 000 over a three year period and raise the reverse tax credit from $800.00 to $1100.00 in 2008 to $1300.00 in 2009.

Lower the top tax rate of perosnal income tax from 35% to 25% for those on incomes of less than $7, 000 per month or $84,000 per annum. Further widen the lower tax band of 20% to be levied on the first $30, 000 of taxable income, up from $24, 200.

A tax break of up to $5000 out of untaxed income on health related equipment and activities.

The tax free personal allowance would be increased from $40,000 to $50, 000.

Remove import duty and VAT from items which support healthy eating habits.

Increase the child allowance from $1,000 to $2,000.

A pensioner whose sole income is the NIS pension will pay no tax.

The welfare stipend paid to severely disabled persons was raised to $96.00, it was proposed to raise it to $100.00.

Ensure that those with incomes under $25, 000 will receive a tax rebate on withholding taxes paid on interest.

Increase range of threshold for land tax from $125, 000 to $150, 000.

Increase the research and development allowance to 200%

Grant duty free concession on sporting equipment.