Dominica’s Prime Minister Roosevelt Skerrit recently presented a EC$758 million budget which will see new benefits for senior citizens as well as an increase in the Value Added Tax (VAT) registration threshold for businesses and income tax incentives on new hotels rooms.
During his two-hour budget presentation Skerrit said total revenues for the year were estimated at EC$718.9 million, while total expenditure inclusive of debt amortization is projected at EC$758 million.
He said nine years after VAT was introduced, the registration threshold was set at $60,000 and in 2007 it was doubled except hotels and rental businesses.
The prime minister said the government will once again increase VAT saying that the new threshold will apply to all types of businesses that are engaged in the supply of taxable goods and services.
Skerrit, who is also finance minister, said effective Sept. 1, 2016 the VAT registration threshold to $250,000 per annum for all categories of businesses.
He said regarding income tax incentives on new hotel rooms, the new measure is based on a request from the hoteliers for an adjustment of the tax incentives granted to them.
Opposition members walked out of Parliament but that did not prevent the passing of the budget.