Dominica Weighs Scrapping Income Tax by 2028

Dominica could abolish personal income tax by 2028, Prime Minister Roosevelt Skerrit has suggested, contingent on sustained growth in government revenues.

Speaking at a recent town hall, Skerrit reiterated his philosophical preference for consumption-based taxation over income levies. This potential abolition would build on an already scheduled reform: beginning January 1, 2027, the Caribbean nation will replace its current progressive income tax rates (15 percent, 25 percent, and 35 percent) with a single 10 percent flat rate.

Finance Minister Irving McIntyre recently noted that the government has steadily lightened the tax burden since completing an International Monetary Fund-supported program, having already raised tax-free thresholds and expanded household deductions. Skerrit argues that eliminating the tax entirely would boost workers’ disposable income, spurring domestic spending and investment, particularly in the growing tourism sector.

The 2028 target remains conditional, however. The administration must first successfully implement its current fiscal measures and ensure national revenues are robust enough to offset the eventual loss of income tax receipts.