Make the VAT?increase permanent!
That was one of the recommendations of the International?Monetary Fund’s (IMF) executive board to Barbados in its 2010 Article IV Consultation released Wednesday night.
Minister of Finance Chris Sinckler in his Budget last month said the 2.5 per cent increase in value added tax to 17.5 per cent would stay for just 18 months.
While welcoming the VAT increase, the IMF urged Government to go further, making it permanent and also raise the corporate tax rate.
The IMF said it welcomed the recent measures to raise VAT rates and public transportation tariffs, while boosting spending targeted at vulnerable segments of society. Directors emphasised that to place public debt on a sustainable path, additional measures will be necessary.
“They encouraged efforts aimed at broadening the tax base, making the VAT increase permanent, raising corporate tax rates, and streamlining government operations, while continuing to rein in current spending. Prioritising expenditure would also make room for moderate increases in capital spending to support medium-term growth.”
Full story in Thursday’s DAILY NATION
