THERE?IS?NO?NEED to worry about Barbados’ informal economy, says Central Bank of Barbados Governor Dr Delisle Worrell.
Speaking to BARBADOS BUSINESS AUTHORITY last Wednesday after a Press conference to review Barbados’ economic performance in 2010, he said every country had an informal economy and it was “one of the things that facilitated the smooth running of the economy”.
“[It] allows us to adjust in difficult circumstances like these because if we didn’t have the informal economy, a lot of people who have lost jobs or who are on short work weeks wouldn’t be able to eat,” he said.
“Because they have some talents that they can do, some hairdressing on the side or whatever the case may be, means that the pressure is taken off the Government.
“Otherwise we would have to have some kind of welfare arrangement to take care of these people, because we can’t have them on the streets,” Worrell said.
Asked whether this “underground economy” deprives Government of tax revenue, he said “small people should escape the tax net”.
“If I have a little weekend business, how much money am I going to make?
“The tax that they are going to get from me is not going to be enough to pay the [value added tax] man to even check my records . . . . there’s a minimum for VAT anyway. People who are below that minimum are not eligible to pay VAT in any case.”
The Governor noted that the number of people gravitating towards this sector would increase as a result of increased unemployment “because people have to live”. (NB)