A summary of Fiscal Measures as announced by Prime Minister Mia Mottley in the Financial and Economic Statement on March 14, 2022 in the House of Assembly.
Effective March 16, 2022 the dollar amount of VAT payable on gasoline will be capped at 47 cents per litre for six months.
Effective March 16, 2022 the dollar amount of VAT payable on diesel will be capped at 37 cents per litre for six months.
Freight costs will be capped at 2019 levels of US $7 350 per 20 foot container and US$8 000 per 40 foot container from March 15, 2022 until March 31, 2023 for the purpose of calculating customs duties.
A fixed rate of $1.80 per cubic metre will be introduced for water in the agricultural sector effective May 1, 2022.
VAT on selected personal and critical care items will be zero-rated from April 1, 2022.
Commencing July 1, 2022 a one off Pandemic Contribution tax of 15% is due on the taxable income for 2020 and 2021 for the banking, insurance, telecoms and oil and gas wholesalers.
For a period of 12 months from April 1, 2022, a Pandemic Contribution Levy of 1% will be paid by individuals who earn a gross personal income above $75 000 for a period of 12 months.
The land tax threshold on residential properties will increase to $300 000 from the 2023-2024 financial year. From April 1, 2026, no land tax will be due on properties with a value of less than $400 000.
There will be a moratorium on interest on outstanding NIS contributions with effect from April 1, 2022 to June 30, 2022 with principal settlement within 2 years.
The NIS is to transition to an independent state owned enterprise by year end.
The NIS will administer all public sector pensions from January 1, 2024.
The pension legislation will be amended to allow for automatic abatement for public officers on early retirement.
All new public officers earning above the earnings ceiling will be required to contribute to their pensions.
The national insurance earnings ceiling will be increased to $1 182 per week or $5,120 per month with effect from January 1, 2023.
A revolving capital loan facility will be secured for the Barbados Water
Authority to execute capital works.
From April 1, 2022 commercial customers of natural gas will pay:
$2.28 for consumption up to 500 cubic meters.
$2.24 for consumption from 501 to 2 500.
$2.22 for 2 501 to 10 000 cubic meters and
$2.20 for consumption over 10 000 cubic meters.
For domestic customers, the rental fee for the rental of meters will increase from $5 to $10 per month.
For commercial customers the fee will increase from $15 to $25 per month.
There will be an Alternate Fuel Levy of $25 per month plus $0.02 per km over 15 000 kms annually from July 1, 2022.
There will be an Excise and VAT holiday on electric vehicles for 24 months commencing April 1, 2022.
There will be a realignment of rates for electric vehicles and other alternate fuelled vehicles in the customs tariff.
From April 1, 2022 the loan limit for public servants will be increased to $100 000 to facilitate the purchase of electric or alternate fueled vehicles.
Effective April 1, 2022, a waiver of import duty and VAT will be granted for two years on the purchase and installation of generators at residential homes.
Authorised car rental companies will pay 50% of the license and the remainder will be deferred for a maximum of 12 months commencing April 1, 2022 to replenish fleet of vehicles. Facility available for 18 months.
Legislation is to be drafted to introduce reverse mortgages.
National Payments System Legislatio to be proclaimed on April 15,
Fair Credit Reporting legislation to be proclaimed on April 15, 2022.
Establishment of the National Payments System Council by April 30, 2022.
Legislation to be introduced to facilitate deposit insurance for credit unions.
Legislation to be introduced to facilitate the sanitary and phytosanitary measures by mid term review 2022.
The Excise tax on sweetened beverages will be increased from 10% to 20% with effect from April 1, 2022.
Legislation to be introduced to create free zones. (BGIS)