2012 Financial Statement And Budgetary Proposals (Part 3)
Wed, June 27, 2012 - 12:02 AM
FEES and LEVIES:
Solid Waste Disposal and Treatment:
Mr. Speaker over the past twelve years or so Barbadians have witnessed an almost doubling of the volumes of solid waste which the society has produced for treatment and disposal by the Sanitation Services Authority. To be sure available data from the Ministry of the Environment indicates that between 2002 and 2011 the following average annual amounts were handed by the SSA at varying sites:
Construction and Demolition: 572,925 Cubic Meters
Lonesome Hill 15,387,422 Gallons
Bagatelle 119,079 Loads
Asbestos Site 952 Loads
Mangrove Pond Landfill 2,573,317 Tons
Most of this is spawned from an average annual collection stream of 863,601 tons of garbage by the SSA. In addition there are currently an estimated 5 million used tyres at the landfill posing severe headaches for the operators. Recognizing this huge and still growing problem the former administration surmised from expert advice that the existing landfills, particularly the one at Mangrove would have been incapable of carrying this load for any extended time in the future.
To that extent they sought to have a new sanitary landfill constructed at Greenland but after spending near $40 million the project was abandoned. The then Government engaged and entered into an arrangement for a PPP with a company called Sustainable Barbados Recycling Centre for the construction of a waste treatment facility to treat this ever growing volume of garbage so as to reduce the amounts going to the sanitary landfill at Mangrove. That arrangement was adopted by this administration and the Centre has been in operation since 2008.
Available evidence I am advised suggests that the Centre has been able to reduce current volumes of garbage to near 2003 levels and were it not for this intervention Mangrove would probably have maxed out its current capacity.
Sustainable Barbados Recycling Centre Ltd
Concomitant on the rise in the volumes being treated by the Centre, the costs Government has to pay for this process have risen appreciably as the number of loads entering the Centre have more than doubled since its opening. On recent submissions from the Ministry of the Environment the least cost in any given year for this absolutely essential service would be $21 million, and at the higher end could reach as much as $28 million as it did in 2010.
However while this service has become critical to us continuing to operate sanitary landfills or disposal sites, it has pushed up the transfer cost to the SSA by nearly 30 million dollars per year. To further strengthen my point Sir in 2008 the current transfer from the Government to the SSA was around 32 million dollars. By 2010 it had reached near 62 million dollars.
What’s more Sir, given the fact that it is projected that Barbadians will produce solid waste in ever increasing volumes over the next two decades we are facing a particularly dangerous situation that could negatively affect our economy financially, and our environment as well. It is for this reason that this administration has put so much stock on our greening economy initiatives including a recent decision by the Cabinet to vigorously pursue the construction of a waste-to-energy facility to convert some of our waste into renewable energy for domestic and commercial use.
However with the best will in the world it is not likely that such a facility will be ready within the next five years or so, and will cost hundreds of millions to erect. In the interim we will have to continue to find the resources to pay for the facilities already existing to help manage this massive problem.
Mr. Speaker while as a country we continue to enjoy free and regular refuse collection and will do so long into the future, it has now become necessary for us as a nation to assist our Government in meeting, at least partially, some of the costs for the treatment of the volumes of garbage we produce on a daily basis. Due to our waste Government has had to engage additional costs to treat garbage without any mechanism for recovery to ensure that traditional services which the SSA provides free of cost to Barbadians can continue.
In light of this, and somewhat regrettably, Government will be forced to introduce a small “greening levy” to assist in meeting the extensive costs associated with the treatment of the garbage which we all produce on a daily basis.
Given the harsh realities of the economic times we in the Ministry of Finance have tried to keep this imposition as small as possible across certain salary categories so as not to create any undue burden. As such I now recommend that a national greening levy be imposed on the salaries of Barbadian workers as follows:
- Persons earning up to 25,000 per year 0%
- Persons earning between 25,000- 50, 000 per year 0.1%
- Persons earning between 50,000 and 100,000 per year 0.15%
- Persons earning above 100,000 per year 0.25%
This will bring the total levy to be collected per month to 0.5 % of insurable earnings for an annual collection total of approximately 15 million dollars per year. The levy will be collected through the NIS and remitted to the Consolidated Fund.
Sir we have kept the level of the imposition especially low so as not to impact too harshly on workers while shielding those in the lower salary brackets from the imposition altogether. It means Sir by way of example that a person earning under 25,000 will pay nothing; a person earning say 30,000 a year will pay $30 a year or $2.50 a month. A person earning 50,000 a year will pay $50 a year or $4.17 per month and a person earning 100,000 a year will pay $150 a year or 12, 50 a month.
Whilst I am well aware Sir that this imposition will likely be heavily criticized and probably be unpopular among those who have to pay it, I would only urge right-thinking Barbadians to deeply reflect on the facts which I have just provided and determine for themselves whether this situation could be allowed to continue unaddressed without doing severe harm to the country, its society and economy.
Mr. Speaker for some time now local Immigration authorities and policy makers alike have been bombarded by several investors, retirees, and others interested in investing in Barbados about the possibility of special entry permits and other forms of status in Barbados. While the existing legislation did make provision for some of this to occur it was highly restrictive and not particularly friendly to credible foreign investor requests. Equally, retired staff of regional and international organizations who resided in Barbados for periods exceeding ten years and whose children were born here while these individuals were on mission where not properly provided for in the legislation and often were placed at a distinct disadvantage.
To this extent, the Ministry of Immigration and the Immigration Department having studied the relevant issues over several months and consulted with a cross section of public and private sector actors, recently made representation to the Cabinet and secured approval for the following:
Agreement to the Revised Policy on Special Entry Permits for Non-
Nationals who wish to retire in Barbados as follows:
i. Property owners who are retired and 60 years or older
The property should have a market value prescribed by the Minister from time to time;
ii. The parent of a citizen of Barbados
The person must be retired and 60 years or older,
should have no dependants, and would not be required to own property in Barbados;
iii. Grandparent of citizen of Barbados
The person must be retired and 60 years or older, should have no dependants, and would not be required to own property in Barbados;
iv. Retired staff of regional and international organizations
These persons must be retired and 60 years or older and should have spent at least ten (10) years in Barbados with the organization. Retired staff from regional organizations are not required to be property owners;
v. Property owners who are retired and under 60 years, but not less than 50 years
There should be provision for retired persons with properties at a value prescribed by the Minister, who are not yet 60 years, but at least 50 years to benefit from a special entry permit for a period until the age of 60 years is reached. At that time, on application, they may then qualify for an indefinite special entry permit;
vi. Property owners who are under 50 years
There should be provision for property owners who are under 50 years with properties at a value prescribed by the Minister, to benefit from a special entry permit for a period until the age of 60 years is reached. At this time, on application, they may then qualify for an indefinite special entry permit.
vii. High Net Worth Persons
These individuals must have net assets of not less than $10,000,000.00. They may be required to submit copies of income tax returns and/or audited statements of net assets to show that they continue to meet the threshold and if the threshold is not met for five years, the indefinite special entry permit should be withdrawn. The proposed sub-categories of high net worth persons are as follows:-
1. Persons Over 60 years and Retired
These individuals should be granted indefinite permits once they meet security requirements, have adequate health insurance, and are retired or not engaging in employment in Barbados;
2. Persons Under 60 Years and Retired
These individuals should be granted temporary permits which are valid until they reach the age of 60. Once all security requirements are met, their source of the wealth is clear, with confirmation through the Central Bank of Barbados or a commercial bank and there is evidence, (high net worth) that the individual would not be likely to seek employment in Barbados and some of their income is taxable in Barbados, they should then be granted a special entry permit;
3. Persons over 60 years who wish to engage in employment in Barbados
These individuals should be granted an indefinite special entry permit on payment of an additional work permit fee;
4. Persons under 60 years who wish to engage in employment in Barbados
In this case of the indefinite special entry permit for high net worth individuals, the fee should be equivalent to the value of multiple long- term work permits.
- Persons who intend to function as non-executive directors of a company should pay an additional fee for a work permit to cover the period of directorship. Persons who at first opt to acquire the status in retirement with no intention of engaging in employment should be permitted to change that status at any time on payment of the additional fee;
(viii) Dependants of High Net Worth Persons
While other persons who qualify for special entry permits are not permitted to have accompanying dependants except a spouse of similar age, high net worth individuals should be permitted to have minors accompanying them as dependants. Spouses should be permitted a similar status. Minor children, while permitted to accompany their parents, should not as minors, be granted indefinite time. They might be granted special entry permit for a period of five years or a term of eighteen years whichever is less. Student visas should be automatic for this period. Permanent status as adults should depend entirely on the circumstances of the dependant himself and not simply on the basis that they resided in Barbados as accompanying minors;
(ix ) Requirement for Special Entry Permits
All applicants and dependants over 16 years must satisfy security checks and submit police certificates of character, proof of adequate health insurance and evidence that they are able to support themselves and dependants. A minimum of $700,000.00 medical insurance coverage for persons under 50 years will be required, and $1,000,000.00 for those persons over 50 years.
Applicants under 60 years who wish to run their worldwide businesses from Barbados, but not work for a Barbadian registered company, will not require a work permit.
The spouse of the applicant should get a residency visa for the same period as the applicant.
Minor children of the applicant, or children who are at University or College and are still fully dependent on the applicant should be given the same term as the applicant, but the applicant must produce evidence every three years that the child is enrolled in a school in Barbados, or is being home schooled with the approval of the Ministry responsible for education.
To accompany these new provisions in the rules I now propose a new fee structure as set out in Appendix 1 to this document to have immediate effect.
In addition to these I also propose to increase the fees for re-entry applications and approvals for re-entry applications to $300 dollars.
Sir the heavy demand for specialized police services and equipment has been taking its toll on both technical and human resources within the Royal Barbados Police Force. Commensurately the cost of most of the inputs into these processes have increased tremendously over time while the fees charged for such things as forensic services, certificates of character, crash barriers, and operational support services have remain static over the last ten years or more.
In this regard the Commissioner of Police has petitioned the Ministry to allow for a small increase in the fees quoted and charged for a specified set of special services. These services can be found at Appendix 2 of the document.
I propose that with effect from August 1st, 2012 the attached fee increases as listed with the Appendix 2 shall become effective.
For many years, Agriculture has performed the role of reducing poverty and eradicating hunger within many civilizations. For us within this developing country, Agriculture has been recognized as being a key developmental tool for stimulating economic growth both directly and indirectly in the country and indeed throughout the region.
The ongoing Global Financial Crisis has affected the food prices locally. The food crisis of 2008 would have taken us all by surprise and its continued affect has persisted until this day.
Recognizing the significance of these occurrences the agricultural sector of Barbados has shifted its emphasis to ensure that food sovereignty is maintained whereby we have the ability to feed ourselves as a nation as well as the visitors to the island. To facilitate the growth and development of the Agricultural Sector, the Government of Barbados on assuming office in January 2008 provided the Sector with a package of incentives aimed at counteracting the constraints being faced within the Sector. This effort has borne fruit resulting in positive growth in the Agricultural Sector in 2009.
Given the impact the global economic downturn is having on this Country’s Balance of Payments position, consideration must be given to the reduction of the country’s food import bill which rose to as high as $678.5 Million in 2008. The Agricultural Sector has been proven to contribute and continues to contribute towards the reduction of the Food Bill on the level of the householder which is of paramount importance in times of unemployment and underemployment.
There is therefore the need to ensure that the provisions of incentives are upgraded as the country seeks to respond to the needs of a modernized Agricultural Sector. The following proposals are therefore aimed at achieving this objective by promoting the development of this Sector on a Sustainable growth path:
- Over the next five years Agro businesses will have access to $20 million in financing from the proposed “Hotel Refurbishment, Energy Efficiency and Food Production Fund. Further details on this will follow later on.
- Increase in the rebate for returning idle lands into production
It is proposed that the current rebate for returning idle lands into production to be increased from $500 per hectare to $1, 000 per hectare;
- We will allocate $3.0 Million to facilitate the re-establishment of the Tractor Cultivation Scheme to be managed by the BADMC;
- Increase of rebates by 100% to farmers who utilize the Services under this Scheme as proposed below;
SERVICE EXISTING RATE PROPOSED RATE
$ per hectare $ per hectare
Ploughing 100 200
Farrowing 80 160
Harrowing 120 240
Rotorvating 100 200
Subsoiling 100 200
- A rebate of $500 for each gilt that is raised to breeding stage. 1000 gilts will be drawn from the programme to increase pig production. This will cost Government an additional 500,000.
- A rebate of 50% up to a maximum of $4,000 per animal imported to for the purpose of improving livestock quality.
Trade Receivables Liquidity Facility (TRLF) (Factoring)
The Factoring programme has been in place for more than a year now and while it has worked relatively well it has encountered some bureaucratic challenges that have at times frustrated the people it was designed to assist. Following a review of this programme by the Ministry of Industry, Small Business and Rural Development and relevant stakeholders and on recommendation from the Ministry we now propose the following adjustments:
The Programme has been lacking in momentum simply because most of the requests have been coming from individuals, micro and small businesses who are owed less than ten thousand ($10,000), the required minimum to be factored. These entities would have to accumulate a debt of ten thousand ($10,000) before they can benefit from the programme and this may not be possible since it depends on the frequency of procurement of goods and or services from their particular establishment. It is therefore proposed that:
- the existing requirement that allows for a minimum of ten thousand ($10,000) to be factored to be reduced to a minimum of five thousand ($5,000);
- the list of financial institutions acting as intermediaries to provide financing under the factoring programme be expanded to include Credit Unions which have indicated an interest to participate in the Programme
Fund Access has been one of the veritable success stories coming out of the recession with a flood of requests for support from scores of young small business people eager to provide employment for themselves and others through investments in various business enterprises. In an effort to assist the Fund in coping with this excess demand for its services I propose to top up the current allocation provided in the Estimates of Expenditure to the tune of $600,000 more. This should help the Fund to deal with a growing list of expectant and budding young entrepreneurs.
As a companion to investment in our young people I equally propose to inject an additional $400.000 into the Micro Enterprise Grant Scheme to also assist the Ministry to deal with the flood of very solid requests that has come in since the initiation of this programme two years ago.
Following numerous requests by businesses both domestic and international and in an effort to contribute to the proper and orderly restructuring of business entities in the country I have acceded to requests to remove the Property Transfer Tax when shares are transferred during a corporate reorganization of a group of companies and with no change of beneficial ownership.
This should become effective from August 1st.
Barbados Cooperative Credit Union League Limited
Mr. Speaker as most of us know the Credit Union sector is a critical part of the financial system in the non-bank financial sector in Barbados. Indeed from very humble beginnings the sector now controls billions of dollars in assets on behalf of their members. A part of these assets represent substantial deposits in various institutions across the island.
However, unlike Insurance companies the law does not offer the same level of protection to credit union members of those financial institutions. Unfortunately credit union members face no less risk than these and believe that they should be similarly protected at least in the minimum under the law.
I agree with this contention. As such I have instructed the Ministry’s staff to begin research to prepare a brief for the Chief Parliamentary Counsel for the amendment of the Deposit Insurance Act and the Financial Services Commission Act to facilitate the creation of a separate ex ante fund for credit unions to have protective cover for their members at a basic rate no less favourable than coverage offered for depositors in commercial banks.
Barbados Association of Retired Persons (BARP)
BARP serves a very important constituency in Barbados and has performed admirably in sensitizing members of wider civil society as to critical issues affect or retired population. They are to be commended. However, as is widely known volunteer work in civic organization can not only be taxing but equally as costly. This Government has over the course of the last four years sought wherever possible to assist proffer assistance where practicable and affordable.
On this occasion the Association has made certain representations to the Ministry of Finance relative to some state impositions on the work of the organization which we concur could be a bit burdensome. To this extent I therefore propose that the Ministry will see to amend the VAT Act to:
- Exempt BARP from the payment of VAT on supplies made by the Organisation, supplies mean the provision of goods, services, real property or any other thing in any manner and includes a sale transfer, barter, exchange, gift, lease, rental, hiring, letting, licensing or deposition.
- Amend the Income Tax Act to exempt BARP from the payment of corporation tax on income.
Single Parent child support Fund:
Mr. Speaker for some time now the very troubling issue of the non-payment of child support by delinquent parents has attracted public attention as much as it has caused consternation among hundreds of single parents across the country.
Indeed Sir, this situation has reached a particularly unsettling stage where on a weekly basis several parents who have ventured into the various Magistrates’ Courts to collect payments have had to leave empty-handed as these payments have not been made and Court Marshalls have been unable to locate the delinquent parent. The downside of this Sir is that several of the nation’s children are then left to struggle without basic amenities and supplies necessary for a meaningful existence.
While this deep sociological issue bears extensive research and study to understand the true parameters of its impact on society, it is evident that its presence and persistence is causing major social dislocation among a particularly vulnerable segment of the country’s population.
While it is not the intention of the Government to encourage delinquent parents to continue with these nefarious practices, or to support the deliberate flouting of the law, we are satisfied that this matter has reached such an unhealthy state that lack of intervention by Government at this stage will lead to the emergence of a dangerous set of circumstances that will work to undermine the household fabric of the society.
To this extent, Government has decided to establish a temporary child support assistance fund to help parents to carry some of the load of maintenance while the state aggressively pursues the delinquent parents to recover the amounts owed. We therefore propose that:
a) Monies in the amount of $400,000 should be allocated to a Vote to establish a Fund that would assist with the provision of child support payments which have been delayed, under the Maintenance Act, Cap. 216, and that this cap be reviewed in accordance with changes in economic and social conditions.
b) The administration of this fund would be done in consultation with the Magistrates’ Courts which currently process child support payments under the Maintenance Act, Cap. 216.
c) Applicants would be entitled to apply for payment from this Maintenance Fund within one month of defaulting parents not adhering to the Court Order to pay child support.
d) Until a comprehensive study is conducted for each child in the system, the amount that each child may receive in a week shall not exceed $50.00 unless in extenuating circumstances where an assessment is made by a Social Worker.
Towards Greening Barbados Economy:
It is now widely accepted Sir, that in years of prosperity very little was done to diversify the economy. There has been an over reliance on tourism receipts and more recently international business as the main foreign exchange generating engines of the economy. However, in focusing on these two sectors, what was ignored was the fact that as foreign exchange was being generated, hardly any effort was being made by the country to prevent the leakages of foreign exchange fuelled largely by the increases in the importation of fuel, motor vehicles and food. In practice, there was a fundamental failure to make the necessary structural changes to the economy as a means of retaining most of the gains made in the two main foreign exchange generating sectors. So the net effect of this situation was that as the country made more foreign exchange it started to spend even more.
Support for this position, can be seen as the importation of fuel into Barbados is now the highest single category of imports on the island’s total import bill. A 2010 research study conducted by the Central Bank of Barbados indicates that fuel as a percentage of total imports increased from 7% in 1998 to over 20% in 2009. The significant increase in Barbados’ fossil fuel consumption can be directly linked to the fact that the generation of electricity and transportation represents 50% and 33% respectively of total fuel imports in 2010.
Over the past 18 years, we have seen a twofold increase in the number of fossil fuel-driven motor vehicles imported on the island from approximately 55,668 in 1994 to 116,675 in 2011. Of importance, there is a noticeable correlation between the increases in the number of motor vehicles on the island and the marked increase in the island’s importation of fuel. This scenario had long been identified as unsustainable and required a radical shift in the island’s energy policy.
The proposals contained in this presentation will seek to further support the several efforts made since 2008 at implementing the necessary initiatives, in particular through a strong focus on Renewable Energy as being a critical, if not the most important, component of restructuring the Barbadian economy within the next five years.
The large scale use of Renewable Energy in Barbados is not a new buzzword. In fact, Barbados has been seen as one of the leaders in the green revolution and this can be observed as the island has been ranked as high as fifth in the world for solar water heater penetration. The recently completed, Green Economy Scoping Study Synthesis Report, produced by the Government of Barbados in conjunction with the University of the West Indies, the United Nations Environment Programme and several private and public sector stakeholders indicated that :
In 2002, Barbados saved 15,000 metric tonnes of carbon emissions and over USD 100 million in energy savings from the 35,000 solar hot water heater systems that had been installed at the time.[ page 22]
Government’s vision, the foundation of which has been laid through the series of Renewable Energy initiatives and incentives previously introduced in budgets since 2008, is to aggressively pursue a policy of matching the level of solar water heater penetration on the island with photo voltaic (“PV”) and wind installations within the next five years. This policy could radically reduce the shocks that the economy has been facing during the current recession from the impact of high fuel and energy prices on Barbados’ external account, which has negatively resulted in slowing down efforts at accelerating economic expansion. This situation has had an extremely severe impact on the cost of doing business on the island, as several local manufacturers and businesses in general have publicly cited the costs associated with electricity as being their largest monthly expense outside of the payment of wages and salaries. In addition to contributing to the high cost of doing business, the high cost associated with electricity generation and fuel for transportation has also substantially contributed to the rising costs of living on the island throughout the last 18 years.
In light of the above scenario, Government has undertaken a careful study of the island’s generation and consumption of electricity. At present the Barbados Light & Power Company Limited (BL&P), the sole licensed producer of electricity on the island, has a total installed generating capacity of 239 megawatts from three generating stations, with a peak demand for electricity of approximately 165 megawatts daily. A major part of Government’s vision for restructuring the Barbadian economy is through diversifying the current sources of generating electricity through the large scale introduction of renewable energy generated electricity into the island’s total installed capacity. Towards this end, Government has identified the bold mission of facilitating the large scale penetration and distribution of PV and wind generating technology on the island to match the current levels of solar water heater penetration in domestic households. This mission can be seen through the fact that if a 5 year target of installing at least 35 megawatts of renewable energy in the form of at least 35,000 one kilowatt solar PV or wind turbines was achieved, it would translate into renewable energy comprising approximately 20 percent of the island’s peak demand generating capacity.
The realization of this target would result in substantial benefits to the island’s economy through the long term retention of foreign exchange as PV systems have extended payback periods of 20 to 25 years with virtually no operating and maintenance costs and would significantly offset the importation of fuel currently employed to generate electricity. With the gradual introduction of energy-efficient vehicles such as hybrid and electric vehicles, the island’s fossil fuel requirements would be further reduced thereby saving foreign exchange. In addition to contributing to the greening of the island’s economy, the large scale integration of renewable energy has the potential for creating thousands of jobs as additional services would be required by electricians, roof installers and engineers to facilitate the installation of the necessary infrastructure. Based on current global prices the total cost of such an initiative would range between BDS$350 to 400 million.
In support of this aggressive vision of restructuring of the economy through renewable energy, government has already examined and proposed several amendments to the Electricity Act of Barbados to facilitate the orderly distribution of excess electricity produced outside of the main power company into the national Grid. This Amendment Bill should be before the House In August and it is expected that the new legislation will provide for prices to be set each year for each renewable energy source. The feeder tariff will hold for a number of years at a level to enable investors to cover their debt service and recover their capital. It will also put a mechanism in place to ensure that the price to the public is kept to a minimum.
In addition, Government through the assistance of a US$20 million Grant from the IADB has set up the Smart Energy Fund to assist SME’s and entrepreneurs with financing at subsidized interest rates of 3.75% for renewable energy-generating and energy-conservation projects.
A fundamental component of Government’s vision towards achieving this transformation is through the utilization of local or homegrown private sector capital investment. The core of this local or homegrown strategy is to create an environment where the excess liquidity in the banking system and credit unions, recently cited as being over BDS$4 billion, can be released to provide the necessary private sector- and private citizen-driven capital investment into entrepreneurial ventures such as increasing the penetration of renewable energy and energy efficiency technologies.
INCENTIVES FOR BUSINESSES GENERATING and DISTRIBUTING ELECTRICITY FROM A RENEWABLE ENERGY SOURCE (RE), BUSINESSES PRODUCING, DISTRIBUTING and/or INSTALLING RENEWABLE ENERGY SYSTEMS FOR ELECTRICITY GENERATION and ENERGY EFFICIENT (EE) PRODUCTS
- Government will provide financial assistance of $100 million in the form of low-interest loans over a eight (8) year period to tool and capitalize the industry, and to provide improved credit to the consumers of RE and EE products produced locally. This loan facility will be available to the industry via the financial intermediaries (including banks, credit unions, and finance companies) and administered by way of a special window under the Industrial Credit Fund and the Credit Guarantee Scheme of the Central Bank of Barbados;
- Building materials and supplies for construction of a facility dedicated to the generation and sale of electricity from a renewable source shall be duty free and VAT free;
- A zero rate of VAT will be applied to all RE and EE systems and products produced in Barbados;
- Developers, manufacturers and installers of RE products will be granted an income tax holiday of 10 years;
- Eligible businesses will now have a 150% deductible on interest paid on loans entered into for:
- upgrading an existing property so as to generate and sell electricity from a renewable source;
- Construction of a new facility to generate and sell electricity from a renewable source;
- Construction of a facility for the installation or supply of renewable energy generation systems or energy efficient products ;
- Eligible businesses will now have a 150% deductible on expenditures for staff training related directly to the generation and sale of electricity from a renewable source in the installation, as well as the installation and servicing of renewable energy electricity generation systems or energy efficient products;
- Individuals will be able to claim the funds spent on RE and/or EE training provided by educational and vocational institutions that are approved by the Barbados Accreditation Council as a separate deduction on their income tax. This deduction can also be made by the parents of minors and adult students (up to the age of 25 years) who are not working and who are studying in the area of RE and/or EE;
- Eligible businesses will now have a 150% deductible on expenditures directly related to the marketing of products for the generation and sale of electricity from a renewable source in the installation, as well as the installation and servicing of renewable energy electricity generation systems or energy efficient products;
- Eligible businesses will now have a 150% deductible on expenditures for product development/research related directly to the generation and sale of electricity from a renewable source in the installation, as well as the installation and servicing of renewable energy electricity generation systems or energy efficient products;
INCENTIVES FOR INVESTORS IN BUSINESSES GENERATING AND DISTRIBUTING ELECTRICITY FROM A RENEWABLE ENERGY SOURCE (RE), BUSINESSES PRODUCING, DISTRIBUTING AND/OR INSTALLING RENEWABLE ENERGY SYSTEMS FOR ELECTRICITY GENERATION and ENERGY EFFICIENT (EE) PRODUCTS:
- Interest earned by financial intermediaries (including banks, credit unions, and Finance companies) for financing the development, manufacturing, and installations of RE and EE products and technologies shall be free of withholding taxes for 10 years;
- Venture capital funds where investments are made in the RE and EE sectors shall be free from corporation taxes for a period of 10 years;
- Contributions to venture capital where investments are directed to the RE and EE sectors shall be deductible from taxable income for a period of 10 years;
- Dividends for shareholders of companies investing in entrepreneurial businesses engaged in installation or supply of renewable energy electricity generation systems or energy efficient products shall be exempted from withholding taxes for a 10 year period;
The income households earn from the sale of electricity produced from the utilization of RE equipment shall be exempted from all taxes;
- 2012 Financial Statement And Budgetary Proposals (Part 4)
- 2012 Financial Statement And Budgetary Proposals (Part 1)
- 2012 Financial Statement And Budgetary Proposals (Part 2)
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