The Barbados Economics Society (BES) says the Opposition’s tax concessions announced over the weekend “will just create a mess” in the economy and widen the deficit unless it plans to get rid of several state corporations.
BES president Ryan Straughn told the DAILY NATION yesterday he commended the “pro-growth initiatives” of Opposition Leader Owen Arthur, but said that without “specifics” it was difficult to assess how effective the policies would be.
Addressing the annual conference of his Barbados Labour Party (BLP) Sunday, Arthur announced a range of tax concessions in a 15-point plan for a BLP administration.
Among Arthur’s plans were the reversal of value added tax (VAT) from 17.5 per cent to 15 per cent, a reduced new middle-income tax rate of 25 per cent, restoration of allowances to their former tax-free status, reduced land taxes, and tax credits for people who bought medical health insurance and education savings plans.
