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FOD manifesto: pension tax breaks, tougher rules for late govt payments

The Friends of Democracy (FOD) is pledging tax relief for senior citizens and penalties for late government payments, as part of its 2026 election manifesto aimed at what it calls “fairness and accountability in public affairs”.

The proposals were unveiled during the party’s manifesto presentation at Bush Hall, St Michael, on Sunday, where FOD president Karina Goodridge said the party intends to address what it sees as long-standing inequities in how the State treats citizens and businesses.

Goodridge said: “For too long we as Barbadians have endured unreasonable delays in receiving payments owed by the Government of Barbados. Meanwhile, when we as citizens owe the government anything, penalties, interest and enforcement actions are swiftly applied. This double standard must end.”

Under an FOD administration, interest would be imposed on the government when it is late in settling outstanding payments.

She said: “We, the Friends of Democracy, are advocating for interest to be imposed on government when it owes money, whether that be public servants, contracted businesses, or young people who volunteer for national festivals, giving of their time and energy. Accountability goes both ways and we must ensure that equitable repayment practices are employed.”

The policy would apply to delayed pension payments and gratuities to retirees and public servants, late payments to vendors, contractors and service providers who have fulfilled government contracts, as well as rebates or refunds owed by government agencies, including tax returns and National Insurance Scheme reimbursements.

A major feature of the manifesto is proposed tax relief for pensioners. Goodridge said the party believes retirees should not be burdened by heavy taxation after decades of contribution to the country’s development.

“We as the Friends of Democracy believe that pensioners have given up themselves and contributed to this nation,” she said. “For over 30 and 40 years you have been giving your blood, sweat and tears to the private and public sector of Barbados, and in your sunset years, blissful retirement should not be overshadowed by the imposition of taxes.”

As part of what she described as a “golden handshake”, the FOD would seek to exempt 67 per cent of all pensions from taxation.

She said: “We propose to exempt 67 per cent of all pensions received by these former workers from any taxes or government impositions. Therefore, Barbados, only 33 per cent of the paid pensions will be taxable or attract any government impositions.”

“You deserve a government who is accountable to you and leads with fairness for all Barbadians, a government and its people who share mutual respect, representatives and their constituents who are accountable to each other.”

Land tax reform also featured prominently in the party’s proposals. Jason Bowen, an adviser to the FOD president, said changes are needed to protect vulnerable homeowners and to stimulate the housing market.

“We want a bold step forward towards a more just and economically superior Barbados, where no family has to fear eviction or financial ruin simply because they’ve dared to own a home,” Bowen said.

He outlined four objectives for land tax reform: protecting vulnerable homeowners from losing property due to tax burdens; stimulating the housing market by making ownership more attractive and affordable; encouraging land development and reducing vacancy or underuse of residential land; and ensuring that commercial entities and wealthier landowners carry a fair share of the national tax responsibility.

Bowen also called for changes to how the solid waste tax is applied, arguing that residents should not be charged for services they are not receiving.

“If the money collected through taxes is used for services to enhance the lives of Barbadians, then those taxes should not be taken from us if services are not being provided,” he said.

“We, the Friends of Democracy, call for the removal of the solid waste tax on any unserviced property. The solid waste tax will only apply to property serviced by the existing sewage treatment plants or those households that will subsequently be attached to any new sewage treatment facility. It is unfair and unjust that households not using sewage treatment plants be charged or levied for a service they are not receiving.”

Additionally, the FOD is proposing to abolish the 17.5 per cent Value Added Tax on imported food. The party says this would be replaced with a 16 per cent “Point of Entry Goods Levy” to be collected at the ports of entry, a move it argues would help ease the cost of living for consumers.

The post FOD manifesto: pension tax breaks, tougher rules for late govt payments appeared first on Barbados Today.

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