Banner promoting anonymous crime reporting with a phone and contact number 1 800 TIPS (8477), featuring the Crime Stoppers logo and a QR code for submitting tips.

← Back

Your message to the BLOGMASTER was sent

Prime Minister Fruendel Stuart
Prime Minister Fruendel Stuart

At 3.53 of the video Prime Minister Freundel Stuart hints at the next BIG change which is being considered by government. He shared with the public that the International Monetary Fund (IMF) has submitted a review our tax system in response to a request from government. In short there is a view government should tax Barbadians and use the revenue  to support government programs. The idea of giving tax benefits through allowances and exemptions to Barbadians maybe on its last legs.

What the muni tax has shown us is that Barbadians are a reactive people. The tax was promised several months ago and as the Prime Minister rightly stated in the video, we have waited until the invoice landed in the mailbox to express concern. It is the same reaction to Massy signs which have dotted the Bajan landscape in recent days. It is the same Bajans who sold a significant chunk of our shares to EMERA and BNB and to Republic Bank and wondered about the decision long after the ink dried.

The government was elected to manage the affairs of the country. The citizens have the right to demand transparency and to hold elected officials accountable, it is our right to protest within the four walls of  the law. To expect 16 individuals selected from among us are possessed with all conquering knowledge that others should only passively observe is the height of stupidity of the yardfowl variety.

We have to live with change, who is denying, the government must always feel obligated to  share information with the public which will assist us to understand policies before implementation. A government cannot contemplate to dismantle our tax system and treat it as a routine transaction. A word to the wise is sufficient.


Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

139 responses to “Tax Benefits Maybe on the Chopping Board”

  1. Caswell Franklyn Avatar
    Caswell Franklyn

    You are failing to admit that the 16 are incompetent and do not have a clue about what it takes to manage an economy. For crying out loud, most of them were either unemployed or underemployed before the 2008 elections. If they could not make a success of their individual lives, what would have given the electorate the impression that a bunch of failures could make a success of this country.


  2. Those sixteen are not incompetent. The ones who voted them in were the incompetent ones.


  3. A couple years ago, the Prime Minister of the government of Barbados stood in his contribution in a Budgetary Debate and clumsily poorly defended the TAXATION system in Barbados.

    Indeed, so appalled were we at his shoddy defense of this evil wicked system, that we took away ALL confidence we had in him as the head of the government of this country.

    We also began to more than ever before ridicule the wishy washy by some people that he was some kind of philosopher in our midst.

    Any philosopher must use his her width depth of intellect in publicly tackling and answering and explaining in very clear logical truthful terms some of the most complicated questions found in the minds of many people in a country, region, world, such that at the end of the day he she makes a profound difference to what went before or after in the history of ideas across the country, region or the world, and as such too he or she commands or was able to – in life or death – a following of students people in the school or discipline in his her chosen field of study philosophy.

    Marx was therefore a philosopher. So was Anta Diop. C L R James was one too.

    Stuart has failed remarkably at doing anything of the sort, and at acquiring the sort of reputation and following becoming of philosophers.

    What philosopher what!!

    Well, that score settled, the fact of the matter is that Stuart is the biggest buffoon that Barbados has ever had for a prime minister of any government in the history of politics in this country.

    PDC


  4. How could Mr. Stuart be a failure when he has won the elections twice?

  5. Colonel Buggy Avatar

    We do not elect our representatives on the basis of their business or management track records. We elect them on their ability to talk sweet. What the Irish refer to as Kissing the Blarney Stone. So the only people who we should be disappointed with , are the Dumb Boy Duo, Stuart and Payne .
    Daily we hear people on the Call in shows, encouraging such professional squawkers as Dennis Johnson, Ellis ,Corey and Moreurine to take up politics. Even the c*** Cupid fancied himself as a Member of Parliament.
    Perhaps Businessman Dennis Kellman would have made a better PM.


  6. In my opinion Mr. Stuart is the best Prime Minister. Other countries should grasp him at their finger tips for the position of advisor in winning elections when his tenure is up. All he would say is that I got alot of sleep, whilst the others did the work. The people of Barbados watched me as I rested and didn’t even bother to wake me up and they allowed me to do this over six years and I thank God that I live in Barbados. Heaven is such a wonderful place, peaceful, quiet, no protest. (Barbados aka Paradise).


  7. There was a comment recently that Barbadians are quick to analyze political issues however we procrastinate when it comes to other issues. For example, there is a hint that the government will tinker with the existing tax policy – what do we do? – wait until the changes have been implemented.


  8. @David “the International Monetary Fund (IMF) has submitted a review our tax system… there is a view government should tax Barbadians and use the revenue to support government programs. The idea of giving tax benefits through allowances and exemptions to Barbadians maybe on its last legs.”

    Dear David:

    The government has always taxed Barbadians and has always used the revenue to support government programs. That is nothing new.

    Who do you think paid for “free” education?

    We the taxpayers of Barbados.

    Who do you think paid for a “free” hospital?

    We the taxpayers of Barbados.

    Who do you think paid for all the other “freeness”

    We the taxpayers of Barbados.

    Who do you think is paying the Prime Minister’s salary?.

    We the taxpayers of Barbados.

    Who do you think is paying the IMF for their studies?

    We the people of Barbados.

    I wish that we would change the language and call all government “freeness” by their right name. TAX FUNDED services. Maybe then we the TAXPAYERS would have more respect for each other, and for the “free” services provided out of hard earned money of our parents, brothers, sisters and children, because those are the people who pay for the “free” services.

    You and the government need to understand that the government does not GIVE us anything.. The government TAKES from one set of taxpayers and GIVES to anther set of people who cannot [or will not] pay taxes. Some of these people are genuinely poor, some have smart accountants to advise them on how NOT TO PAY THEIR FAIR SHARE OF TAXES. Some are just plain dishonest.

    You and the government also need to understand that the IMF does not live here, DOES NOT PAY TAXES here, and most importantly the IMF DOES NOT VOTE HERE.

    We do.


  9. @Simple

    Can you ‘guess’ why governments like Barbados go cap in hand to the IMF?


  10. Yes David. Because they need to borrow money. And because they know or hope that the hard work, and blood sweat and tears of their people will pay off the loans.

    Bajans are still capable of hard work, blood, sweat and tears. Although our government seems lost, we Bajans have not yet lost it.

    We voted for these people we see clearly now that it was an error.

    We will correct our error in due course.


  11. @Simple

    You seem fixated on the symptom and not the cause.


  12. It is interesting the MoF referred to the tax review by the IMF as well and that the concern by the IMF Barbados maybe leaking a lot of revenue by loosely determining taxable incomes. Interesting days ahead.

  13. Adian Loveridge Avatar
    Adian Loveridge

    David, I think many of us believe that additional taxation is a severe deterrent. We use a simple rule for cost effective marketing and promotion. We expect a ROI (return on investment) of 10:1 or a return of $10 for every $1 spent. The Municipal Solid Waste Tax that we will be be forced to pay (in our case $8,417) if spent on marketing would have produced and additional $84,170 in sales. Which would have produced more VAT. NIS and other taxes for Government, option 1 or 2?


  14. The real issue here is that this DLP administration has entered an agreement with the IMF, and because of the political implications involved, they have refused to inform Barbadians.

    Every day, we are being given hints months in advance about changes to our present social system, and this lot wants to give us the impression these ideas are coming from them.

    We heard Ronald Jones hinting at UWI fees months before the decision was made to allow student to fund their education. However, because of the outcry, they hurriedly tried to put financing in place, which was not thoroughly thought out, hence the situation at the Student Revolving Loan Fund and the probability that many prospective students cannot qualify for loans under the present system.
    John Boyce hinted at hospital fees, (which he and Dexter James subsequently denied) and we are now seeing such fees being systematically and progressively implemented at the QEH.
    A few months ago Stephen Lashley spoke about the possibility of parents contributing to the summer camp program.
    Subliminal messages are being conveyed to Barbadians, by Michael Lashkey, about a restructuring of the Transport Board, (which has begun with a reorganization of routes) and that an end to subsidizing bus fares is imminent. Hence, individuals using the bus service may have to pay according to distance travelled. It is also interesting to note that on Brass Tacks Sunday (July 6, 2014), Sinckler hinted at the possibility of a review of school children travelling free on TB buses.

    We are now hearing Sinckler hinting about tax reform and implementation of new taxes.


  15. @Artax

    To add credence to our suspicious Christine Legarde, head of the IMF, recently conveyed the IMF’s position on the policy of small island states like Barbados supporting a ‘free’ education policy. All agree we have to tweak old policies to support new strategies BUT for heavensakes, tell us, be frank!


  16. The chickens have flown home to roost; the credit card is maxed out, no more borrowing from Peter to pay Paul and from Paul to pay all. The days of low taxes or no taxes are fast receding in the rear view mirror and “freeness” will soon be a distant memory.

    There is a price for being a member of the “developed” world but Barbados wasn’t paying it, we were like the folks in the fancy house with the exotic car who took vacations to faraway places while the neighbours looked on enviously wondering where did they get all that money? The answer? It was a lifestyle fueled by debt and now the whole sorry house of cards is about to crash and Gov’t is trying to avert disaster.

    The sacred cow of free education is already on the butcher block, the retirement age has been raised, some taxable allowances have been decimated and more cut backs harken in the future.
    Enjoy it while you can its later than you think.


  17. David | July 8, 2014 at 7:54 AM

    I refer you to the IMF 2013 Article IV Consultation report (February 2014), caption 23, page 12:

    “TAXATION: The tax base has been significantly eroded by waivers and exemptions. For example, tax waivers by the Customs and Excise Department are estimated at over 5.5 percent of GDP in 2012/13. In addition, there is significant revenue forgone from applying below-standard rates to some taxpayers. Some of the 2013 measures move away from the goal of expanding the base, and concessions to specific tourism projects in late 2013 further erode the tax base and create a non-level playing field. The tax system would benefit from a comprehensive review with the aim of broadening the base, improving equity, and reducing distortions and the scope for discretion. The authorities have requested Fund technical assistance to review domestic taxation, which is expected in 2014.”

    Does this address your concerns?

  18. Mr Watson Parkinson Avatar
    Mr Watson Parkinson

    Bad long as the IMF is involved with the economy of this country we will be in dire straits…! Independence in 1966 is a joke… The powers to be have found a new way of capturing countries. We’ve just being captured…!
    There’s something the can do, alas, they’ve not got the bottle…! I’ll just say this, Mugabe’s actions regarding his country and people was spot on…!


  19. Parkinson so that is why Mugabe’s country is in the state it is now?


  20. Wunna Black Brass bowls wunna don’t know the power wunna weild collectively! I have always stated that we are the wealth of the merchants and the government. Yet all we do is bellyache and groan and peep out from behind the curtains.


  21. This would lead to more rampant corruption in government and the private sector. When a country is overtaxed, has no integrity legislation, then corruption will flourish.


  22. Are the taxpayers of this island being called upon to “refund” government for the massive tax concessions handed out to Massa Butch? Also, will Massa Butch continue with his “investment” here in view of these new taxes or is he exempt again? Further, can you remember when our very own Central Bank Governor tore the skin off the back to the head of the IMF to cheers from the home crowd? Revenge is a dish best served cold and man, it is freezing in here.


  23. Today July 8, 2014 in Daily Nation newspaper page 13 is a Cahill Energy advertisement “Open House invitation to the People of Barbados”. “Senior Management from Cahill Energy will share their perspectives on the new Waste-to-Energy- plant as well as launch the new Cahill Energy Limited Barbados Website.”

    “There will be a presentation which will be followed by a question and answer period. The Open House is open to all Citizens of Barbados.

    Date: Thursday July 10, 2014
    Time: 6:30pm to 8:00pm
    Location: St. Thomas Parish Church
    Arch Hall, St. Thomas


  24. I am wondering if Sandals will be exempted from paying this solid waste tax. Remember this tax came about after the granting of the sweet deals.
    David you hear anything yet.

  25. Adian Loveridge Avatar
    Adian Loveridge

    Tell me Why, I raised the same question on Barbados Today earlier but they did not post my comments. Don’t forget that the MSWT is based on the improved value, so after spending a much quoted US$65 million plus the cost of the property, what would the tax due be?
    And if every other hotel has to pay the tax and Sandals does not, what is the fairness in that. Perhaps this question is too impertinent?


  26. Adrian & Tell me Why. All Sandals have to do is apply for exemption as a case of “hardship”. actually they could apply on the basis of “fairness” because after all you can’t give them all those exemptions and them come after and impose a new tax.

    They will probably argue that they are an environmentally friendly operation and recycle and reuse and dispose of all their waste themselves…lol…


  27. Adrian: This is one tax freeness to this empire that will not go down well with individuals, hotel operators who are crying out already and various businesses in the island. Listening to Morning Barbados a certain real estate mogul was propagating that some people just have to pay $600.00. He showed a three apartment building with a swimming pool having to pay $310.00. Where the hell Barbadians will get an additional $300.00 within a month. Look like we have professional brassbowls doing the calculation in the BRA. This BRA started without a foundation and lack of steel, so we are seeing STEAL from the taxpayers at the last minute.

  28. Adrian Loveridge Avatar
    Adrian Loveridge

    Another area I think the Government has not considered properly is people with second homes on Barbados who only occupy them for limited periods of the year. Take an eight week stay for a house valued at $4 million, it will add $1,000 per ocupied week. It certainly might influence whether people actually buy or rent in future. Sales attract property transfer tax, stamp duty and VAT. Yet another example of policies not thought through.


  29. Wunna yahoos sat back for fourteen years and let this sh…t to continue.take a look at all the laws that were put in placed to protect corporate goverance while corporations feast off big subsidies and wunna proped them up with outrageous credit card spending fueled by trickled down economics under the last blp administration.now the gravy train has run dry wunna crying.yes it is time to pay back..the lesson learned fools and their money would eventually part..


  30. Nostradamus you said:
    They will probably argue that they are an environmentally friendly operation and recycle and reuse and dispose of all their waste themselves…lol…
    ………………………………………………………………………………………………………
    Country folks for years took the garbage and burn it. After burning, the embers were spread out in kitchen gardens and cane crops. These old age pensioners should be exempted.

    Based on information, Americans usually pay $200.00 in waste tax per year. Why couldn’t Government applied the following
    $150.00 across the board for chattel homes
    $250.00 across the board for wall homes
    $500.00 for elaborate homes over 3/4 million to 2 million
    $650.00 for mansions over 2 million
    $600.00 for businesses up to 30 employees
    $750.00 for businesses over 30 employees

    At least this type of distribution will be fairer than the present system and would appear to more transparent.
    The higher the payment, the less you will get. Just study why Bushy Park had few spectators. Also study why Government getting less taxes due to people will dropping out of the system.


  31. What about companies that do not use SSA services and send all recyclable material to SBRC (Bizzy’s place) or B’s Recycling and other recycler’s.

  32. millertheanunnaki Avatar
    millertheanunnaki

    @ FearPlay | July 8, 2014 at 9:19 AM |
    &
    Tell me Why | July 8, 2014 at 9:30 AM |

    An excellent observation!
    It will be most interesting to see if Sandals is exempted from the S W TAX while the other hotels are expected to pay.
    We shall see if that lying impertinent incompetent MoF would be bold enough to make such a foolish decision. But what can we expect from a buffoon.


  33. Let us analyse the reason for IMF involvement in the Barbados economy.

    We have to accept that government was rather reactive than proactive in their response to this protracted recession. The failed “Medium Term Fiscal Strategy: 2010 – 2014” and “Medium Term Development Strategy: 2010 – 2014”, has proven the government’s economic policies during the period were inadequate and may have made the effects of the crisis worse. Additionally, monetary policy does not ideally support the fixed exchange regime, since the Central Bank has continued to finance government expenditure, which would inevitably affect operational independence of the bank (I mentioned this fact in previous contributions).

    The IMF becomes concerned when countries are unable to address deficit and debt issues, and such concerns are often discussed during the Article IV consultations. Barbados is burdened by debt which has risen significantly, with the debt to GDP ratio rising from 85% at the end of 2012, to 97% as of March 2014. Also, 30% of government revenue is used to service interest payments. Consequently, Barbados’ social and economic progress has suffered considerably from the burden of an unsustainable debt and fiscal deficit, which has effectively crowded out most other public expenditure, especially in infrastructure (all the infrastructural projects have been put on hold).

    As such, the IMF will analyse Barbados’ economic situation and make recommendations to government on what policies should be implemented to reduce the fiscal deficit and debt burden. For example, the Fund has indicated that Barbados’ central government wage bill (exclusive of statutory/quasi organisations) is the highest in the Caribbean, having risen to 10.3% of GDP in 2013 (hence, the reduction in public sector employees). The fund has also expressed concern about tax exemptions, significant transfers to public enterprises and social services being accessed by those who can afford them.

    According to the IMF, Barbados should explore the suggestion of divesting some state enterprises. I refer you to the IMF 2013 Article IV Consultation report (February 2014), caption 40, page 17:

    “Divestment of some state assets could help lower debt and raise private sector investment and growth. The authorities may wish to consider divestment of non-strategic assets to help reduce the nation’s debt burden while at the same time contributing to productivity. These could include selling shares in some public enterprises, real estate holdings, and eventually some of the transport activities. Sales which involved FDI would be particularly helpful by removing potential constraints to enterprises financing their investments.”

    The pending restructuring of the Transport Board, and the reduction in staff at the Drainage Unit with the subsequent outsourcing of these services to the private sector, are examples of the diversification process taking place.


  34. Tell me why said;
    “Based on information, Americans usually pay $200.00 in waste tax per year. Why couldn’t Government applied the following”

    TMW…..because it would make too much sense, remember nothing the DLP/BLP governments do make sense unless it enriches them individually, everything that is done someone has to force them to do it, eg. IMF, World Bank, credit rating agencies……there is a pattern.


  35. That is what you all voted for. More taxes please!!!!!!!!!!!!!!!!!! Stinkliar. Layoff the teachers too as Mary Redman was hinting at that on CBC news last night. Guyana and Jamaica in the making, ’nuff’ crime, scammming and everything to survive. Good luck Bajans.


  36. Below is one of Barbados’ fiscal adjustment measures as outlined in 2013:

    “Revenues: Measures are aimed at stabilizing declining revenues in a way that shares the burden across society. They include a temporary high-income surtax, lottery tax, end of car excise rollback, tax on bank assets, tobacco excise tax, “waste” tax on property, and reduction in certain waivers, especially those not related to the foreign exchange earning sectors. There is also a reduction in the VAT rate for tourism that will lower revenues. All of these measures are at various stages of implementation and staff predicts that their cumulative contribution to fiscal adjustment could amount to about 1.5 percent of GDP by 2015/16.”

    Note the taxes.


  37. @conscious | July 7, 2014 at 11:07 PM |

    How could Mr. Stuart be a failure when he has won the elections twice?
    …………………………………………………………….

    Correction…………………The dead king won the 2008 election, Stuart and his cronies stole the 2013 election. In other words Stuart has not won an election yet! It is just semantics to say he he won twice, he did no and all Barbados is now paying the heavy unbearable price!


  38. Now that we have established what you have said, how can we get take it back, or do we have to wait for the next four years.


  39. @David July 8, 2014 at 6:23 AM |

    It is interesting the MoF referred to the tax review by the IMF as well and that the concern by the IMF Barbados maybe leaking a lot of revenue by loosely determining taxable incomes. Interesting days ahead………………………………..

    This DLP government as well as the Sandi government have already taken away a lot of the tax deductions. I knew that this day will come when the MOF said that they were inviting the IMF to look at our tax system. The strange thing is that in the US we hear everyday of the tax loopholes people use to avoid paying taxes. We have no such luxury here!

    I would hope that this stupid government (because this is just how they are acting and reacting) will also get rid of the consolidated tax(that is also a burden on taxpayers) and would not accept lock, stock and barrel everything the IMF tells them to do.

    I am tired of this government.


  40. Tell me Why,

    I am waiting to hear if Sandals gets an exemption from paying this tax if they do I would urge the poor not to pay either.


  41. Our democracy allows for the citizenry to protest within the boundary of law, the political directorate, if they are interested in remaining popular and being reelected, they should listen BUT in this case, the government has a problem., it is broke.

    On another note, the economy is skrinking, how do we explain maintaining the size of cabinet and parliamentary secretaries? This is not about the savings that will result but the leadership ot demonstrates.


  42. They need to shrink the size of the cabinet and parliamentary secretaries, stop paying the opposition taxpayer’s money, let them work to be elected, instead of talking a torrent of shit incessantly, lots of changes need to be made.


  43. With reference to my earlier post re if Sandals will have to pay the tax – frankly Massa Butch is in a good place at this time. He has not invested in any of the promised mega deals as far as reported by the media therefore a mere threat of withdrawal from previous promises to government will have this box of very sharp tacks bowing and scraping to seal the deal and gain bragging rights for another “success”. You go Massa, you go, you are negotiating with Barbados’ best and brightest.


  44. Didn’t the government say that they were pumping 600 milliom dollars to stimulate the economy? Has any money been disbursed as yet? Where, to whom and how has it been disbursed?

    It is clear that the crisis at the hospital does not take priority in the house today.


  45. @ Adrian

    Waste Tax is based on “SITE VALUE” and not Improved Value.


  46. @Adrian

    If Waste Tax was based on Improved value, BIGGER OUCH !!!!!


  47. Are we paying Bizzy for a service that B’s is doing for free???


  48. The Political Leader of the People’s Democratic Congress (PDC) – Mark Adamson – armed with a placard in his hands – descended – at around 15 minutes past 9, Tuesday, 8th July, 2014 – on Broad Street – in front of Republic Bank, to stage a demonstration against TAXATION by the government in this country.

    Holding a yellow fair-sized placard – which bore the words on one side – DEATH TO TAXATION – and the words on the other side – Do Not “Pay” Any Solid Waste Tax, up in front of him, towards many oncoming drivers of vehicles, and towards many pedestrians, he got to experience first hand the tremendous number of people in Barbados that are/have been very opposed to the government’s stealing and robbing more and more of the remunerations of the relevant people, businesses and others in this country.

    These persons made their feelings principally known by verbally indicating agreement with his placard by saying “I agree”, “that is true”; by tooting their horns; by raising their thumbs in the air, etc.

    Too, a wide cross section of people – many old and young – many males and females – were telling him that they are not going to be handing over any monies/credits to the government on account of this so-called mythical Municipal Tax.

    Before leaving at around 11 am, Adamson educated many passersby – by speaking to them aloud – about the fact that the government of Barbados is really stealing and robbing countless portions of the remunerations of hordes of people, businesses and others – and calling it TAXATION, and that any government that continues to steal rob those entities of what rightfully belong to them – their remuneration properties – must be stopped; must be permanently removed from office in this country. Indeed, many voices in the background could be heard sounding agreement with what he had to say.

    And thus the PDC’s political educational campaign against TAXATION in this country continues…..

    PDC

  49. Adrian Loveridge Avatar
    Adrian Loveridge

    Wily, thank you for the clarification, but I have heard both.
    So those hotels who qualified for the 50 per cent land tax rebate will now effectively pay virtually twice this amount in 2014.
    Can someone explain how any business can absorb a 100 per cent increase in costs at 2 weeks notice, let alone hotels who often contract agreed rooms rates 18 months ahead of arrival dates.


  50. @Adrian

    Similar relief applies to pensioners over 60 that get property tax relief, the new WASTE TAX is some 127% of their property tax, Ridiculous.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading