(Barbados Nation) Tax relief
• Value Added Tax (VAT) rate remains at 17.5%
• Allowances will continue to be taxed
• The 50% increase in excise duty on fuel remains but a review downward is promised if oil rises above US$95 per barrel.
• 0.5% “greening levy” on insurable earnings
• Tax threshold moved from earnings of $24 200 annually to $30 000 – with a 17.5% tax rate for earnings between 24 200 and $30 000 almost restoring lost income from allowances
• Immediate 2% ($33 million) cut in 2012 budgets to all ministries
• “Ounce of prevention” tax credit of $750 to persons 40 years-plus for annual medical check-ups
• Reduction in tax rates paid by international business companies to discourage relocation from the island
• Land tax rebates to pensioners from 50% to 60%
• 30-day land tax amnesty on penalties and interest
• Excise tax on mid-sized vehicles lowered by 25% and an increase in the chargeable value on new vehicles from $45 000 to $55 000
• Immigration fast tracking for high net worth foreigners
• Agri-businesses to access $20 million from proposed Hotel Refurbishment, Energy Efficiency and Food Production Fund
• 100% rebates to farmers to return idle land to production
• Factoring programme extended to credit unions and users can access it for sums as low as $5 000
• Additional $400 000 in grant funds to the Micro Enterprise Grant Scheme
• Proposed extension of deposit insurance of up $25 000 to credit union members
• VAT exemptions to Barbados Association of Retired Persons
• $400 000 allocated for child support
• $100 million in low interest loans for the renewable energy businesses and energy efficient products
• Zero VAT on renewable and energy efficient systems produced locally
• Tax holidays for developers, manufacturers and installers of these products
• A suite of incentives to companies generating and distributing electricity from a renewable energy
• National Insurance Scheme (NIS) to help capitalize new Hotel Refurbishment, Energy Efficiency and Food Production Fund
• Land taxes on hotel accommodation to be frozen at current levels
• NIS surpluses to help fund University of West Indies, Barbados Community College, Sixth Forms, and the Samuel Jackman Prescod Polytechnic
• 30% public share offering in divestment of the Grantley Adams International Airport and the Barbados Port Authority
• Tax holidays and fiscal incentives to spur the Barbados Stock Exchange
