With Government’s new fiscal year starting today, Minister of Finance Ryan Straughn says “everything is in place” for Barbadians to begin feeling the benefits of relief measures announced in the recent Budgetary Proposals.
He noted that this included the policies to cushion the cost of imported goods and to give households an ease on their electricity bills.
In the March 16 Budget, the minister announced that effective April 1, there would be several initiatives focused on easing the cost-of-living, citizen security and resilience, growth enhancement measures, relief for the business community and to help pensioners and Barbadians with special needs.
Exemption
“The de minimis exemption on imports and everything else, all of those things are in place,” Straughn said yesterday.
The de minimis exemption on imports, which takes effect today, relates to goods landed in Barbados for personal use delivered via registered courier and postal shipments. The threshold for duty and value added tax (VAT)free importation value has been raised from “$60 to $150 free-on-board”, among other measures.
The exemption does not include alcoholic beverages, cannabis products, vaping products, cigars, cigarettes and manufactured tobacco regardless of value.
Families will also get a promised ease on their electricity bills this month after Government implemented hedging of fuel prices, enabling the authorities to absorb 50 per cent of the increase in the Fuel Clause Adjustment (FCA) on the electricity bill above the March bill FCA for three months.
Government is allocating $7.9 million over the three-month hedge window to keep household electricity bills stable.
“The electricity bills will be issued based on the implementation of the fuel hedge, so obviously bills that are coming out in April will reflect the pricing policy in relation to the hedge, so things are in place,” Straughn said.
Other cost-of-living measures he announced in the Budget included that with effect from today until March 31, 2027, the VAT collected on gasoline will be capped at 47 cents per litre and that on diesel at 37 cents per litre.
In addition, also from today, the excise tax charged on gasoline will be reduced for three months from 99.39 cents to 89.39 cents and diesel from 44.03 cents to 34.03 cents.
Additional budgetary proposals taking effect at the start of the 2026-2027 financial year include an extension of the excise and VAT holiday on electric vehicles until March 31, 2029, and the cost of replacement batteries for electric and hybrid vehicles are eligible for five-year personal income tax deduction.
Cap value
From today as well until March 31, 2027, the Customs and Excise Department is to cap the value for a 20-foot container at US$3 000 and the value for a 40-foot container at US$6 000.
This month also means some additional financial relief for special groups, including pensioners, people on welfare and those with special needs.
There is a $100 per month cost-of-living cash credit for pensioners with annual income less than $50 000 per year, Barbadians over 65 years not in receipt of any pension income, for people receiving welfare benefits, and children and adults who receive the special-needs grant.
April measures for citizen security and resilience include that for the next year, all purchases of dashcam and GPS devices for installation on all vehicles be duty and VAT free on importation to Barbados.
The business community, including the agriculture sector, tourism and small businesses, will also be getting assistance at the start of the new fiscal year.
An annual rebate of up to $5 000 for initiatives that utilise organic material for fertiliser and plant and animal inputs is now accessible, as is a 100 per cent rebate up to a maximum of $15 000 for small poultry farmers participating in the Barbados Agricultural Society project, where a special paint designed to reduce heat and energy stress is used on chicken farms.
Further, from today, the threshold applied to the rebate for farm security has increased from $10 000 to $15 000, while the Trust Fund Limited loan limit has increased from $10 000 to $20 000.
All tourism properties with concessions issued under the Tourism Development Act on or after January 1, 2005, can now receive an automatic threeyear extension to their concession agreement, except properties with concessions issued on or after April 1, 2020.
Straughn also announced in the Budget that from April 1, there is a multiple birth cash grant to support families having multiple births up to age five. (SC)
The post Relief measures ‘now in place’ appeared first on nationnews.com.
