Business
Barbados: Tax changes announced in 2012-13 budget
The amnesty will cover unpaid land tax balances for fiscal years dating between 1981-82 to 2011-12. It is proposed that under the amnesty, there will be a full waiver of both the penalty and interest due on the unpaid tax, dependent on the full amount of principal being paid in a one-off payment for the respective year due.
Other changes include a 25 percent reduction in excise duties on imported cars, with the chargeable value of a vehicle capped at BB$ 55,000 (US$ 27,500), up from BB$ 45,000 (US$ 22, 500) previously. In addition, the concessionary treatment of locally-manufactured vehicles will be repealed, and these vehicles will be subject to the same rates applicable to their imported counterparts of between 20 percent to 120 percent, depending on the model.
Other changes in the budget include the introduction of a number of tax concessions, particularly VAT exemptions for alternative energy product suppliers, and reduced duties on vehicles that are powered by eco-friendly fuel sources.
In addition, new residence permits are to be granted to High Net Worth Individuals, on a number of conditions, including that their acquired wealth should exceed BB$ 10 million (US$ 5 million).
