PRICEWATERHOUSECOOPERS (PwC) DIRECTOR OF tax and legal services Louisa Lewis-Ward has welcomed a number of measures announced in last Tuesday’s budget.
However, she stressed the importance of clear definitions and proper implementation during the annual post-Budget breakfast meeting hosted by the Barbados Chamber of Commerce and Industry and PwC at Hilton Barbados last Wednesday.
“The return to the 7.5 per cent VAT rate on accommodation and the reduction in the VAT rate on direct tourism services, once clearly defined, will be welcomed, as will the increase in the Barbados Tourism Association marketing budget and the hotel refurbishment fund.
“Similarly the $7 million in additional funding for Invest Barbados to promote international business will be welcomed although it is unclear what the actual promotional budget will be after recent ill-advised recommendations in the allocations to this vital sector so critical to the growth of foreign exchange earnings,” she said.
Lewis-Ward noted that any efforts to have outstanding legislation enacted and to streamline the process of licence renewals for international business companies would also be well received.
“The establishment of a national business facilitation unit to assist with the smooth and efficient implementation of prospective investments both local and foreign has great potential if well implemented with the right personnel and if planned oversight by a cabinet committee on economic policy is effected,” that tax expert added.
She noted that the partial removal of free tertiary education would have a significant impact on the pockets and psyche of all Barbadians.
Lewis-Ward also said “much anguish” was likely to be expressed over the impact of the additional land tax charge of 0.7 per cent on the improved value as well as the fiscal consolidation tax and the 50 per cent reduction in the reverse tax credit.
She pointed out that “at least the Minister will be seen as even-handed in these changes since the change will impact a large cross-section of the population”.
However, she said a significant number of the proposed measures would have the greatest negative impact on Barbados’ middle class, which was expected to be critical in spurring economic growth. (NB)