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:-