The opposition in Barbados has escalated its demands for the government to fulfill its 2018 pledge to reduce the Value Added Tax (VAT) rate from 17.5%, a rate established nearly 15 years ago. The call comes as rising living costs continue to burden ordinary households, with critics accusing the government of inaction. During a parliamentary debate on the Companies (Economic Substance) (Repeal) Bill and the Income Tax (Amendment) Bill, Opposition Leader Ralph Thorne highlighted the pressing issue of taxation and its impact on citizens. Thorne reminded the government of its promise to lower VAT, which was initially increased from 15% to 17.5% in December 2010 as a temporary measure under the Freundel Stuart administration. He argued that the current VAT rate is a direct financial burden on all citizens, regardless of their economic status, and serves as a disincentive to spending. Thorne emphasized that while VAT may benefit government revenues, the primary responsibility of any administration is to alleviate the tax burden on its people. He linked lower taxes to economic freedom and urged the government to act on its promise, questioning whether the current VAT rate is reasonable and whether its reduction could provide partial relief to the populace. Thorne challenged the government to clarify its intentions regarding VAT reduction and to specify the extent of any planned cuts. In response, government representative Ryan Straughn defended the administration’s economic record, acknowledging the unfulfilled VAT reduction promise but highlighting efforts to stabilize the economy and support families. Straughn suggested that a VAT reduction remains a future possibility, while emphasizing the government’s ongoing commitment to improving citizens’ welfare.
