Business
No new taxes in Barbados budget
But the increase in VAT and other measures from the 2010 Budget have not been rolled back either. Tourism and business are among the sectors that have been promised incentives.
Rewards for energy efficiency
Incentives have also been proposed for homeowners and businesses to be more energy efficient. Currently, they can benefit up to a maximum of US$3,500 every year through Income Tax deductions in respect of energy audits, renewable energy and energy efficiency retrofits.
Minister Sinckler said that, with effect from the current tax year, the energy conservation and renewable energy deduction will double from US$2,500 to US$5,000 per year for individuals and US$12,500 per year for registered small businesses.
Meantime, in an attempt to increase the use of alternative energy sources, duty free concessions offered to the hotel and manufacturing sectors on the importation of electric water heaters will be discontinued from January next year.
The Finance Minister also announced relief from the increasingly high cost of fuel for the most vulnerable groups in society such as the elderly, disabled and the unemployed indigent. They will receive a one-off energy grant.
That initiative will commence on October 1 and will be to a maximum of US$2.5 million.
Sinckler said that in an effort to facilitate the promotion of renewable energy and energy efficiency, Government will be putting the necessary enabling environment in place.
“In this regard within the next few weeks, draft renewable energy and energy efficiency policies will be submitted to the Cabinet along with proposals for the amendment of the relevant legislation,” he said.
“It is the Government’s intention to have draft legislation in respect of the renewable energy policy within the next few months to facilitate the generation of electricity by renewable energy systems and the sale of electricity to the grid.”
“This comprehensive programme will create an institutional, policy and operational framework that will set the appropriate incentives to generate substantial energy savings, reduce the cost of electricity to households and businesses and contribute to a reduction of oil imports and hence liberate funds for other purposes,” he added.
It is projected that Barbados will be able to reduce oil imports cumulative costs over the next 20 years from US$2.648 billion to US$1.978 billion, as a result.
Some players in the tourism sector have also been given a tax ease. Taxes paid on remittances to global insurers, by businesses that offer attractions and tours to travelers in the cruise industry, will be eliminated.
