The Barbados government has successfully delivered $18.8 million in reverse tax credits to nearly 14,000 low-income citizens this week, providing crucial financial support ahead of Christmas celebrations. Finance Minister Ryan Straughn announced to Parliament on Friday that the Barbados Revenue Authority (BRA) distributed $16.2 million through banking institutions to 11,941 recipients, while an additional $2.6 million was issued via physical checks to 1,994 individuals whose banking information remained unregistered.
The initiative represents a cornerstone of the government’s cost-of-living relief measures, offering a $1,300 cash rebate specifically targeted at employed Barbadians earning $25,000 or less annually. Eligibility requirements include minimum employment thresholds, National Insurance contributions, and having paid less than $500 in income tax for the current fiscal year.
Minister Straughn connected the disbursement to broader economic modernization efforts, highlighting how the current mixed payment system—combining electronic transfers and physical checks—demonstrates the necessity of implementing digital financial infrastructure. The government is actively developing a national real-time payment system that would future credits, refunds, and benefits through digital wallets via the BIMpay platform.
‘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,’ Straughn noted, emphasizing the practical challenges of traditional payment methods.
The finance minister confirmed that key government agencies including the Treasury Department, BRA, and National Insurance and Social Security Service are being equipped to process electronic payments more efficiently. This transition aims to accelerate various disbursements including welfare payments and court-ordered maintenance allocations.
Straughn directly linked faster payment processing to enhanced economic vitality, stating that increased velocity of money circulation would stimulate consumption patterns and support broader economic growth. The timing of this financial injection coincides with peak holiday spending periods, potentially amplifying its positive impact on both household finances and national economic indicators.