ELEGANT TOUCH: Minister of Transport, Works and International Business John Boyce getting a boutonniere from a supporter. (GW)

THE DUTY-FREE SCHEME will be expanded to allow any retailer who passes the due diligence checks of the Ministry of Finance to retail goods free of import duties and excises.

This will be to retailers posting a bond of 30 per cent of the estimate of quarterly duty that the retailer and customs agree would most likely be otherwise payable on the goods to be sold free of duty.

Prime Minister David Thompson said this bond would reduce by five percentage [points] per year on satisfactory reporting and reconciling of duty-free sales to rest at a bond of five per cent which would otherwise be payable.

"This change in the duty-free arrangement would reduce the cost to existing duty-free shops, provide easier entry to the duty-free scheme from new shops, especially small businesses, and encourage shops of very shop quality and famous brands not now in Barbados to open their establishments here for duty-free shopping.

"Shops with less known brands would also be encouraged to establish operations since the administrative and financial burdens would be reduced," he said.

The drawback system of duty-free retailing, which allowed licensed operators to sell the duty-paid goods and then apply for a refund after the items were taken out of the island is being phased out and, as of September 1, the new market entrants will be permitted to take delivery of imported goods which they are offering for sale duty-free to tourists, without the payment of the relevant duties and taxes.

"The expansion of the duty-free scheme should help with the redevelopment of Bridgetown as a shopping area of quality, and should also expand shopping opportunities on Speightstown, Worthing and Holetown and the various hotels."

Meanwhile, the international business services sector will be looking at negotiating more double taxation treaties and bilateral investment treaties with Barbados and other countries with emphasis on the Latin American and Asian countries.

Conditions

"Work will be intensified to create the conditions locally to make Barbados attractive to regional and international companies as a location for their business headquarters.

"These include tax benefits, immigration arrangements for senior and professional staff and their families, relaxation of exchange controls on capital transactions, double taxation agreements, bilateral investment treaties, dispute settlement arrangements, educational and health facilities and skills availability," said Thompson.

To help in the area of skills, more attention will be placed on education at the university level in information technology, finance and accounting, law and other services required by this sector. (WB)