Almost 12 000 Barbadians have received reverse tax credits amounting to $16.2 million this week, delivering an end-of-year financial boost to low-income earners ahead of the Christmas holiday, Finance Minister Ryan Straughn told Parliament on Friday.
The funds were issued through banks and credit unions by the Barbados Revenue Authority (BRA), while a further $2.6m was paid by cheque to almost 2 000 people whose banking details were not on record.
The reverse tax credit is a $1 300 cash rebate introduced as part of the government’s cost-of-living relief measures and is targeted at employed Barbadians on low annual incomes.
Managed by the BRA, the programme applies to residents earning $25 000 or less per year who meet a set of criteria, including minimum employment and National Insurance contributions, and who have paid less than $500 in income tax for the year.
The December payout had been flagged earlier this year, with Straughn indicating in October that eligible recipients would receive their credits before year-end as part of efforts to ease household pressures during the holiday period.
“I want to say to Barbadians that this week the Revenue Authority, in relation to the reverse tax credit, has sent $16.2 million to various financial institutions covering some 11 941 persons,” Straughn told the House during debate on the National Payment System (Amendment) Bill.
“There is an additional $2.6m which has been issued by cheque, for 1 994 persons because the Revenue Authority does not have bank account information for them.”
The disclosure came as Straughn addressed Parliament on wider efforts to modernise how money moves through the economy, but the minister used the update to underscore the immediate benefits of faster government disbursements.
The continued reliance on a mix of electronic payments and cheques illustrated why the government is pressing ahead with plans to route future credits, refunds and benefits through digital wallets once the national real-time payment system is fully operational, he said.
“So I hope that this time next year when we are paying the next set of reverse tax credits, and the same will happen with refunds and these other things, that we will be in a position to route all of these payments into persons’ digital wallets because they would have adopted BIMpay,” the minister said.
He pointed to the practical delays faced by cheque recipients, particularly those dependent on physical delivery and in-person banking.
“Especially the person with cheques, because you got to wait for the postman to deliver, and then you got to find your way to a physical location in order to be able to access that money,” he said.
Straughn told Parliament that work is ongoing to ensure key government agencies, including the Treasury Department, the BRA and the National Insurance and Social Security Service, are fully equipped to process and distribute payments electronically.
“Similarly, I know national insurance is equally working to make sure that they too, with respect to being able to deliver benefits faster,” he said, adding that other disbursements, including welfare payments and court-ordered maintenance, are also expected to transition to digital channels.
The minister acknowledged that the shift has taken longer than anticipated but said systems now coming on stream would significantly improve how Barbadians access government funds.
He said: “I’m saying to Barbadians that whilst it has taken a little longer than we anticipated, we are on the cusp of being able to see significant improvements with respect to Barbadians accessing and experiencing a different experience with respect to payments.”
Straughn linked quicker payouts to broader economic activity, arguing that faster circulation of money would support consumption and growth.
“The reason we have the Treasury online is that with the small businesses and suppliers of government, our ability to pay you in real time digitally equally is important because of the need to ensure that the velocity of money increases in the economy,” he told the House.
“And I know that once money is turning over, then goods and services are being demanded, and we will have a much more robust and inclusive Barbados economy.”
The latest tranche of payments comes as thousands of Barbadians prepare for holiday spending, providing a cash injection the government hopes will ease pressure on households while supporting wider economic activity. (SM)
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