At A Glance: Budget Proposals and Financial Statement 2022

A summary of Fiscal Measures as announced by Prime Minister Mia Mottley in the Financial and Economic Statement on March 14, 2022 in the House of Assembly.

• Effective March 16, 2022 the dollar amount of VAT payable on gasoline will be capped at 47 cents per litre for six months.
• Effective March 16, 2022 the dollar amount of VAT payable on diesel will be capped at 37 cents per litre for six months.
• Freight costs will be capped at 2019 levels of US $7 350 per 20 foot container and US$8 000 per 40 foot container from March 15, 2022 until March 31, 2023 for the purpose of calculating customs duties.
• A fixed rate of $1.80 per cubic metre will be introduced for water in the agricultural sector effective May 1, 2022.
• VAT on selected personal and critical care items will be zero-rated from April 1, 2022.
• Commencing July 1, 2022 a one off Pandemic Contribution tax of 15% is due on the taxable income for 2020 and 2021 for the banking, insurance, telecoms and oil and gas wholesalers.
• For a period of 12 months from April 1, 2022, a Pandemic Contribution Levy of 1% will be paid by individuals who earn a gross personal income above $75 000 for a period of 12 months.
• The land tax threshold on residential properties will increase to $300 000 from the 2023-2024 financial year. From April 1, 2026, no land tax will be due on properties with a value of less than $400 000.
• There will be a moratorium on interest on outstanding NIS contributions with effect from April 1, 2022 to June 30, 2022 with principal settlement within 2 years.
• The NIS is to transition to an independent state owned enterprise by year end.
• The NIS will administer all public sector pensions from January 1, 2024.
• The pension legislation will be amended to allow for automatic abatement for public officers on early retirement.
• All new public officers earning above the earnings ceiling will be required to contribute to their pensions.
• The national insurance earnings ceiling will be increased to $1 182 per week or $5,120 per month with effect from January 1, 2023.
• A revolving capital loan facility will be secured for the Barbados Water
• Authority to execute capital works.
• From April 1, 2022 commercial customers of natural gas will pay:

1. $2.28 for consumption up to 500 cubic meters.
2. $2.24 for consumption from 501 to 2 500.
3. $2.22 for 2 501 to 10 000 cubic meters and
4. $2.20 for consumption over 10 000 cubic meters.
5. For domestic customers, the rental fee for the rental of meters will increase from $5 to $10 per month.
6. For commercial customers the fee will increase from $15 to $25 per month.

• There will be an Alternate Fuel Levy of $25 per month plus $0.02 per km over 15 000 kms annually from July 1, 2022.
• There will be an Excise and VAT holiday on electric vehicles for 24 months commencing April 1, 2022.
• There will be a realignment of rates for electric vehicles and other alternate fuelled vehicles in the customs tariff.
• From April 1, 2022 the loan limit for public servants will be increased to $100 000 to facilitate the purchase of electric or alternate fueled vehicles.
• Effective April 1, 2022, a waiver of import duty and VAT will be granted for two years on the purchase and installation of generators at residential homes.
• Authorised car rental companies will pay 50% of the license and the remainder will be deferred for a maximum of 12 months commencing April 1, 2022 to replenish fleet of vehicles. Facility available for 18 months.
• Legislation is to be drafted to introduce reverse mortgages.
• National Payments System Legislatio to be proclaimed on April 15,
• 2022
• Fair Credit Reporting legislation to be proclaimed on April 15, 2022.
• Establishment of the National Payments System Council by April 30, 2022.
• Legislation to be introduced to facilitate deposit insurance for credit unions.
• Legislation to be introduced to facilitate the sanitary and phytosanitary measures by mid term review 2022.
• The Excise tax on sweetened beverages will be increased from 10% to 20% with effect from April 1, 2022.
• Legislation to be introduced to create free zones. (BGIS)