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A summary of the tax measures announced by Premier Mia Mottley in the March 14, 2022 Financial and Economic Statement to the House of Assembly.
- Effective March 16, 2022, the dollar amount of VAT payable on gasoline will be capped at 47 cents per liter for six months.
- Effective March 16, 2022, the dollar amount of VAT payable on diesel will be capped at 37 cents per liter for six months.
- Freight charges will be capped at 2019 levels of US$7,350 per 20ft container and US$8,000 per 40ft container from March 15, 2022 to March 31, 2023 for duty calculation purposes.
- A fixed rate of $1.80 per cubic meter will be introduced for water in the agricultural sector as of May 1, 2022.
- VAT on certain personal and critical care items will be zero-rated from April 1, 2022.
- Effective July 1, 2022, a one-time pandemic contribution of 15% is due on taxable income for 2020 and 2021 for banking, insurance, telecommunications, and oil and gas wholesalers.
- For a 12-month period beginning April 1, 2022, a 1% pandemic levy will be paid by individuals who earn a gross personal income greater than $75,000 during a 12-month period.
- The property tax threshold on residential properties will increase to $300,000 starting in fiscal year 2023-2024. Effective April 1, 2026, no property tax will be due on properties valued at less than $400,000.
- There will be a moratorium on interest on unpaid contributions to the NIS with effect from April 1, 2022 to June 30, 2022 with principal settled within 2 years.
- The NIS is to become an independent state enterprise by the end of the year.
- The NIS will administer all public sector pensions from January 1, 2024.
- Pension legislation will be amended to allow an automatic reduction for public officials in early retirement.
- All new public officials earning above the earnings ceiling will be required to contribute to their pension.
- The National Insurance earnings ceiling will be increased to $1,182 per week or $5,120 per month from January 1, 2023.
- A revolving capital loan facility will be secured for Barbados Water
- Authority to perform capital works.
- From April 1, 2022, commercial natural gas customers will pay:
- $2.28 for consumption up to 500 cubic meters.
- $2.24 for consumption of 501 to 2,500.
- $2.22 for 2,501 to 10,000 cubic meters and
- $2.20 for consumption over 10,000 cubic meters.
- For domestic customers, the rental fee for meter rental will increase from $5 to $10 per month.
- For business customers, the fee will increase from $15 to $25 per month.
- There will be an alternative fuel charge of $25 per month plus $0.02 per km over 15,000 km annually starting July 1, 2022.
- There will be an excise and VAT holiday on electric vehicles for 24 months from April 1, 2022.
- There will be a realignment of rates for electric vehicles and other alternative fuel vehicles in the Customs Tariff.
- Effective April 1, 2022, the loan limit for public servants will be increased to $100,000 to facilitate the purchase of electric or alternative fuel vehicles.
- As of April 1, 2022, exemption from import duties and VAT will be granted for two years on the purchase and installation of generators in residences.
- Authorized car rental companies will pay 50% of the license and the rest will be deferred for up to 12 months from April 1, 2022 to replenish the vehicle fleet. Installation available for 18 months.
- Legislation needs to be drafted to introduce reverse mortgages.
- National Payments System legislation to be enacted April 15
- 2022
- The Fair Credit Reporting Legislation will be proclaimed on April 15, 2022.
- Creation of the National Payments System Council by April 30, 2022.
- Legislation will be introduced to facilitate deposit insurance for credit unions.
- Legislation to be introduced to facilitate sanitary and phytosanitary measures by mid-term review 2022.
- The excise tax on sugary drinks will increase from 10% to 20% effective April 1, 2022.
- Legislation to be introduced to create free zones. (BGIS)
