Pursuant to the Financial Statement and Budgetary Proposal of June 11, 2018, the Minister of Finance and Economic Affairs and Investment stated:
“… . In order to restore parity between income and corporation tax Sir, we will raise the highest corporation tax from 25% to 30%. This will be effective from October 1, 2018 and this will raise $57 million in a full year….”
However, subsequent to the Financial Statement and Budgetary Proposal a decision was made by the Minister of Finance, Economic Affairs and Investments that the new Corporation tax rate will take effect from Income Year 2018.
To give effect to the Minister’s proposal, the Barbados Revenue Authority (“the Authority”) wishes to advise that the purpose of the rate increase is to raise additional revenue and to reduce the debt to Gross Domestic Product (GDP).