Thousands of low-income Barbadians will receive their 2024 reverse tax credits in early December, providing “a little something extra this Christmas”, Minister in the Ministry of Finance Ryan Straughn announced.
Straughn told journalists the government would pay the 2024 reverse tax credit, a cash rebate of $1 300 offered to employed residents with low annual incomes.
Managed by the Barbados Revenue Authority (BRA), the scheme is designed to provide financial relief to those who earn less than the country’s standard personal tax allowance. To qualify, an individual must meet the following criteria:
– Be a resident of Barbados.
– Earn an annual gross income of $25 000 or less.
– Have been employed for at least four months during the income year.
– Have paid at least $1 300 in National Insurance Scheme (NIS) contributions for that year.
– Have paid less than $500 in income tax for the year.
Straughn said that although the law allows up to two years for payment of the allowance, the government would pay last year’s credits in December. “And that would give those persons a nice little Christmas boost to make sure that they have a little something extra for Christmas.”
He also said that everyone entitled to the solidarity allowance should have received their money by now.
“We gave the NIS all the money that they asked for, so they should have received… I think just north of 200 000 people, I think, that were eligible for it. It was $68 million, I think. So, they should have received it so long as they gave the NIS the right bank information or address.”
Asked if he was satisfied with how the process went, Straughn said he would have preferred if BIM Pay — the Central Bank’s proposed new instant digital payment arrangement — had been available to pay everyone at once.
“Having said that, the process took too long, in part because there is still some reluctance of people to, in some instances, adopt new technologies. But I am thankful the Central Bank is doing the long run up, going all across the country explaining to shopkeepers, vendors and everybody.”
The solidarity allowance is a one-off $300 grant for Barbadian citizens aged 18 and over who meet residency requirements, with eligibility including individuals in the tax system, self-employed people and pensioners.
Payments began in May, and individuals should have registered to receive their funds from either the Barbados Revenue Authority or the National Insurance and Social Security Service (NISSS).
Straughn made the announcement on the sidelines of the second Caribbean Debt Forum at the Hilton Barbados Resort.
(EJ)
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