Business
Barbados: Tax changes announced in 2012-13 budget
Barbados has announced numerous changes to the nation’s tax regime in the 2012-13 Budget. Some of the changes include revisions to the corporate and personal income tax regimes, land tax changes, and a tax amnesty.
The Barbados 2010-13 budget is again one of austerity, it aims to narrow the nation’s deficit, which shrank from BB$ 720 million (US$ 360 million) in the fiscal year 2010-11, to BB$ 389 million (US$ 194.5 million) in fiscal year 2011-12, or 4.5 percent of gross domestic product (GDP).
Value-added tax (VAT) was increased from 15 percent to 17.5 percent, the excise tax on gasoline and diesel was increased by 50 percent, and the tax-free allowances for certain workers were removed. The government of Barbados has revealed that it is to maintain these measures, with small changes to the latter for 2012.
The value-added tax (VAT) rate is to be made permanent, and the excise duty rates on gasoline and diesel will remain for as long as oil prices are lower than US$ 95 a barrel.
The Barbados government will not reinstate the personal income tax concessions repealed in 2010.
The lowest rate of personal income tax will be lowered from 20 percent to 17.5 percent, applicable on income of less than BB$ 30,000 (US$ 15,000) up from BB$ 24,200 (US$ 12,100) previously.
A rate of 35 percent will continue to apply on income over BB$ 30,000 (US$ 15,000).
