The Ministry of Finance wishes to advise that the 15 per cent tax on lottery winnings over a $100,000 which was announced in the 2013 Financial Statement and Budgetary Proposals will be implemented fully, albeit with some changes, following the passage of the appropriate legislation.
The Ministry notes that following the Budget presentation, some industry players wrote to ask the Ministry to re-look the proposal, highlighting some challenges which they believed might have been encountered given the changed structure of their industry. The Ministry examined those concerns, found some to be valid, and formally indicated to at least one major player that it had decided not to pursue the measure in its original form.
The Ministry, however, also took the decision that it would make necessary adjustments to the original proposal, allowing it to achieve the objectives which it set, and re-submit it to Parliament on the occasion of passage of the appropriate governing legislation, following Cabinet approval.
In this regard, the Ministry is currently putting the finishing touches to the proposal, following which industry players will be duly informed. It is expected that this process will be completed in a few weeks.
The Ministry of Finance would also like to take this opportunity to inform the public that with respect to the Consolidation Tax, The Tax on Bank Assets, and the Municipal Solid Waste Tax, the governing pieces of legislation for these impositions have been completed or are in the final stages of completion and will be laid and debated in Parliament over the next three weeks.
When passed, together with the passage of the Lottery Winnings Tax, they would represent the full legal implementation of the tax component of Government???s fiscal measures from 2013.
Additionally, the administrative arrangements for the implementation of reduction of VAT on Direct Tourism Services (DTA) are now complete, have been communicated to the Barbados Hotel and Tourism Association, and the draft amendments to the VAT Act to support this are also expected to be moved in Parliament this month.
Finally, the Ministry also wishes to inform the public that in keeping with the commitment of the Minister to update the Parliament and the country on the implementation of aspects of the 19-month Fiscal Adjustment Programme, the Minister of Finance and Economic Affairs, Christopher Sinckler, will deliver a Ministerial Statement in Parliament during the first week of December on the progress which has been made thus far on this important aspect of Government???s economic programme.
Particular focus will be paid to the implementation of the expenditure reduction aspects of the proposals announced.