GOVERNMENT’S BUDGET has imposed an additional $200 million in taxation, but there are likely to be challenges administering the new measures.
Institute of Chartered Accountants of Barbados president Lisa Padmore gave that assessment in an initial reaction to Minister of Finance Chris Sinckler’s presentation.
Calling the tax reforms sweeping, the chartered accountant said the Budget came at the end of the 19 month adjustment programme was aimed at further reducing Government’s fiscal deficit to more sustainable levels.
However, she said there were likely to be challenges in the administration of the measures, including the new cell phone tax.
Padmore also expressed concern that several of the measures outlined required the acquisition of a tax clearance certificate from the Barbados Revenue Agency, which could be challenged in handling requests for these documents. This was because it was still working on processing two years of income tax returns.
“Adding the need for a tax clearance certificate to take advantage of some of these new measures, on top of the recent move by the Central Bank of Barbados to enforce the requirement for a tax clearance certificate for certain foreign exchange payments off-island will add more burden on the BRA,” she said.(SC/PR)
