Barbadians will be paying more taxes on goods and services as a result of an increase in the rate of Value Added Tax.
In delivering the national budget presentation this evening, Finance Minister Chris Sinckler announced that effective December 1, 2010, the rate of the VAT would move from 15% to 17.5%.
“This increase in the VAT is intended as a temporary measure for the next eighteen months. I further propose to review this at the end of one year with a view to providing relief subject to progress in reducing the fiscal deficit,” said Sinckler, adding that “this measure is expected to raise an additional $124 million.”
