Increases to the Reverse Tax Credit (RTC) and Compensatory Income Credit (CIC) for the 2025 income year, aimed at putting more money back into the pockets of lower- and middle-income Barbadians.
The RTC, which benefits those earning up to $25,000 per year, will increase from $1 300 to $1 700. The income limit for the RTC will also rise from $25 000 to $33 000, with individuals in this band receiving a credit of $750.
In addition, the income limit for the CIC will increase from $35 000 to $50 000, providing additional relief to more Barbadians.
Minister of Finance Ryan Straughn said the changes are designed to ensure that “more money stays in the pockets of ordinary Barbadians,” supporting households while maintaining fiscal responsibility.
Additionally, taxable allowance for pensioners to increase from $50 000 to $75 000, there will be a 12-month cost of living cash credit for pensioners ($100 per month) and for those not receiving any type of pension, they will get a $100 cost of living cash credit. (AM)
