Pandemic Levy Misery

Prime Minister Mia Mottley announced in the recent budget that a 15% pandemic contribution levy will be charged to companies deemed resilient that earned net income greater than 5 million dollars in 2020 ad 2021. Companies operating in telecommunications, retail sale of petroleum products by dealers, commercial banks, general and life insurance were targeted. The years 2020 and 2021 as we know were the pandemic that wreckrd havoc on global economies, some more than others. 

The blogmaster understands the challenging job the government has to manage a fragile economy, one that was in a precarious state before Covid 19 pandemic. Not to forget Hurricane Elsa, Soufriere volcano ash and of recent the effect the ongoing Russia-Ukraine war. Managing an open economy cannot be easy EXCEPT to armchair pundits.

Understandably spokespersons from the business community effected by the levy are not pleased. Coming relative soon after the debt restructure in 2018 when many of the companies effected by the pandemic levy had to take haircuts, the recent decision will not help to improve confidence level of doing business in Barbados. What other options did the government have to shore up finances?

There is the saying if you [WE] made your [OUR] bed, you [WE] have to lie in it.

Listen to Prime Minister Mia Mottley explain the Pandemic Levy:-

https://www.erienewsnow.com/clip/15304122/prime-minister-mia-mottley-announces-pandemic-contribution-levy

110 comments

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    It’s what she wants to take the reparations money and do with it i got a problem with, none of it is slated to go to whom it rightfully belongs in their HANDS…and that’s what UK and EU have to take into consideration……

    ..that’s why any payments should go DIRECTLY TO AFRIKAN DESCENDANTS, definitely not through politicians, and not necessarily in this century….there is more important things to get moving and taken care of first that needs to be a PRIORITY…as my article outlines…

    Like

  • @ David
    “There was once a time when we had something like honour and self-confidence. That was in 1966. Now we are beggars, begging our High White Masters from the North for a few seeds of bread.”
    ~~~~~~~~~~~
    Boss, this is from Tron …about his Supreme leader.
    Any comments from the Blogmaster?
    … or is it only Bushie who you see as an eternal pessimist and as a hopeless BB…?
    Even Tron is upset by the level of supreme mendicancy…

    Like

  • @Bush Tea

    Human behaviour has always been fueled by politics and greed.

    Like

  • @ Bush Tea,,

    I hope you listening to Brasstacks

    Main topic. TIEFING LAWYERS

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Bushman….at least we know that reparations in piles of billions of paper, as they are salivating to get their hands on at the expense of descents, will have to take a back seat, cause cousin Boris is busy with cousin Vladimir and everyone got their own showtime going on right now, can’t be distracted by a bunch of pests…

    some will have to regroup, they know they have to make amends but i won’t hold my breath that it will be soon or they will be rushed by the heavy breathing rush and hurry CROWS…

    …….and not a fella ain’t letting go no billions at this stage unless they discover some kinda rare earth minerals on the island chain,…and Haiti is already choc-a-bloc miles deep under the earth…. and not even them ain’t getting nutten….not in this century anyway…

    don’t know what gets into these, these fools…

    Like

  • @ Hants
    Was that you who asked why all lawyers’ Client accounts should not be audited annually?

    How yuh like the answer..?
    LOL
    ha ha ha
    Bajans are the ultimate BBs…

    She said it could not be done because ‘in the case of a new lawyer with only one client, the lawyer may not be able to afford the audit fee…’

    LOL
    Murda!!

    Liked by 1 person

  • @Bush Tea

    Why was a lawyer hosting a program of this type even if she was well intentioned?

    Like

  • @ Bush Tea March 30, 2022 11:06 AM

    It is high statesmanship to gloss over even nonsensical political decisions and illuminate them in a rosy light. I am sure that our Supreme Leader did not come up with this herself, but incompetent advisors working for the DLP.

    There is not a leaf that fits between me and my Supreme Leader.

    Like

  • STIFF PENALTY

    BRA warns of consequences if pandemic levy not paid
    By Shawn Cumberbatch
    shawncumberbatch@nationnews.com

    Companies and self-employed individuals may have to fork out more than the $115 million Government is banking on collecting from its one-off Pandemic Contribution Levy.
    The Barbados Revenue Authority (BRA) is putting affected tax payers on notice that they will face penalties and interest if the imposition is not fully paid by the time the measure expires on March 31 next year.
    And while the levies for companies and individuals are not tax deductible, firms and individuals will still be required to file tax returns in addition to their regular income tax filings.
    “In circumstances where a company [employer or self-employed individuals] fails to pay, or pays after the prescribed payment date, or fails to deliver the return, a penalty of $500 will be imposed in each instance,” the BRA said in a series of policy notes detailing what will be required of tax payers.
    It added that this penalty will be “in addition to interest at the rate of one per cent calculated for each month during which any part of that amount was not paid on the largest amount of levy and penalty that was due and unpaid at any time in that month”.
    The Pandemic Contribution Levy for companies and individuals was announced by Prime Minister and Minister of Finance Mia Amor Mottley in her recent Budget and is intended to help Government recoup some of the $1 billion spent fighting the COVID-19 pandemic.
    Some members of the business community and their representatives, as well as some financial analysts have criticised the tax, which has to be paid at a rate of 15 per cent, as burdensome and inequitable.
    The BRA said the tax is required to be submitted in eight equal payments between July 15 and February 15, 2023 and was applicable to telecommunications companies, life and general insurance companies, majors
    engaged in the sale of fuel, and commercial banks.
    These entities must have earned a profit above $5 million in 2020 and 2021.
    In the case of individuals, the revenue-collecting agency reminded that the Pandemic Contribution Levy “will be charged on individuals employed in Barbados with income of $6 250 or more per month during the period April 1, 2022 to March 31, 2023”.
    However, self-employed Barbadians will not escape the pandemic tax net. Just as employed individuals will have to pay the one per cent levy, the BRA said that “a Pandemic Contribution Levy will be charged on the income of self-employed individuals whose income in Barbados is $75 000 or over for the period April 1, 2022 to March 31, 2023”.
    For companies, whose monthly payments will be equivalent to 3.75 per cent of their net income in 2020 and 2021 the BRA said: “This levy is payable in addition to the company’s corporate tax obligations and is not deductible for tax purposes. The Barbados Revenue Authority is responsible for the collection of the levy and the administration and enforcement of any law enacted to facilitate same.”
    “The expiration of the levy does not nullify the obligation to pay and therefore sums subsisting thereafter continue as a liability until the amount due and owing is fully satisfied.”
    The state agency added that “companies will be required to file a return to be known as a Pandemic Contribution Levy Return [and] this return shall be filed on or before the prescribed payment dates between July 15, 2022 to February 15, 2023 inclusive”.
    Regarding individuals, the BRA said that “every employer or any person paying remuneration will be required to deduct or withhold from those payments the amount attributable to the levy. As such, employers will be required to remit the sums deducted or withheld on or before the 15th day of the following month for the previous month.”

    Source: Nation

    Like

  • @Bush Tea

    This is for you.

    Be prepared for old age
    PEOPLE 60 YEARS and under still have a chance to be prepared for the debilitating stage of old age. You will know when it is there, as it has no camouflage. The latest prediction is that 30 per cent of people living now in Barbados will reach the magic age of 100 years. The daily newspapers are proving this right, and the President will soon need a deputy.
    Regardless of the present difficult circumstances, preparations should be made now for the likelihood of not being able to operate at maximum capacity. Try to understand what is going on around you. This applies to everyone except the five per cent of our people – the very rich.
    Today saving in a commercial bank is not worth what Paddy shot at, as the interest rate is not attractive and there are the ubiquitous fees; the saving depreciates daily. Investing in the stock market is iffy (except you were lucky to sell shares), as growth in businesses is not guaranteed for some years to come. Investing in Government paper with a slightly higher rate of interest may eventually reward you with medium-term bonds for repayment unless you are prepared to sell before maturity at a loss. However, we have seen bonds not being honoured.
    Lucky enough
    So what do we have left? We have our pension if we are lucky enough to work for an entity with longevity such as the Government; but with the Government the goal posts keep moving. For those of us who are already on pension, observe that it can be subject to more taxation and most times is not indexed to the cost of living. A further imposition is new taxes like the Solid Waste Tax, the Pandemic Contribution Levy and … taxes to come fair or unfair.
    Annuities for future payment offer some hope. One has to be careful as investing in CLICO has left a bitter taste. However, certain life insurance companies offer the best opportunities on the market right now. You may well ask why not the National Insurance Scheme (NIS). Well, when compared with the cost of health care and the prospects of an increase in the disbursements of NIS (considering its low investment options) that income will not go very far.
    Right now, some sort of insurance is the best option. If one has the means rental income is a good way to go although that too has some problems and depends on whether you have a reliable tenant or not. But an old Jew told me, “bricks and mortar never alter”. Even if the real estate market is weak at the moment, there is every hope that at some time it will recover. This article was started some time ago, but is more relevant today. One of the burning questions now is for the older people to understand the changing technology. Most companies are communicating with
    their clients online. Take for instance, the banks.
    There are no statements and banks are forcing customers to bank online.
    Even this is changing. Before an old geezer can get online, banks are talking about a cashless society. You are now required to have a wallet with a central organisation from which you can exchange information with someone with a wallet. In some countries it is said that the state controls how the wallet is used in as much as it dictates what is bought and sold.
    More concern
    Here in Barbados so far, they have mentioned wallets, but the Governor has been more concerned with longer lasting bank notes indicating that cash has some time to live.
    But some banks are penalising customers who bring cash to the bank. Customers whose business involves many cash transactions have to pay for depositing cash to the bank – soon notes. This is so because the bank earns nothing by keeping cash/notes and getting rid of it is at a cost both in terms of keeping it and sending it to the Central Bank or to other banks.
    Thus, it is imperative to be able to keep up to date with the changing times. Since we may be living longer, our children will be older as we enter our older years and by then have acquired their own burdens. You are on your own and dependent on your preparations.
    But all is not lost. Living longer means more time to enjoy life and gloat at the mistakes of the youth.
    So it is imperative to take care of the body that God has given to you as well as you can so that you can watch the world go by in your “golden years”.
    Harry Russell is a banker. Email quijote70@gmail.com

    Source: Nation

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