ROSEAU, Dominica, CMC – The Dominica government Friday presented an EC$1.7 billion (One EC dollar=US$0.37 cents budget to Parliament urging citizens to meet their tax commitments to the country.
Finance, Economic Development, Climate Resilience, and Social Security Minister Dr. Irving McIntyre told legislators that the recurrent expenditures would be EC1,502.4 million, while the recurrent revenue is EC$1,202.5 million.
He said that the allocation for goods and services accounted for 35 percent, or $234.9 million, of total recurrent expenditure and that the total budgeted for personal emoluments is EC$167.1 million, or 25 percent.
“This amount considers increases in some of the allowances paid to public officers. The amount set aside for retirement benefits, transfers, and subsidies is EC$144.6 million. That includes public assistance, grants, and payments to local, regional, and international entities.”
McIntyre said interest payments are expected at EC$54.1 million, while debt amortization and contributions to the sinking fund are estimated at EC$73.2 million.
He said n respect to the capital estimates for the 2024-5 fiscal year 2024/2025, he is proposing a capital expenditure of EC$934.9 million.
The Finance Minister said that the expenditure budget will be financed from a combination of government revenue, loans, and g, totaling EC$1,502.4 million.
“Of the EC$1,202.5 million recurrent revenue which is projected, we expect to raise tax revenues of at least EC$414.1 million, EC$760.0 million through the Citizenship by Investment Programme (CBI), and other recurrent revenues, such as fees and licenses totaling EC$28.4.”
But McIntyre said these projections and more could only materialize if Dominicans “as good citizens live up to our obligations and pay our taxes.
“This year, the Government will strengthen the revenue collection systems to collect monies owed to the State. Too many businesses and people owe income tax, value-added tax, motor vehicle licenses, company fees, hospital fees, and land lots purchased from the Government, among others.
“Taxes, licenses, and fees are our contributions to the effective running of the State, including maintenance of our roads; ensuring we have medicines and supplies at our health facilities as well as nurses and doctors to provide services; securing the State and ensuring that our children receive an education.
“These are just some reasons why we must pay taxes on time. If we do not pay our taxes, we deny the State the revenue it needs to better provide for our citizens.”
McIntyre said that the nation is sometimes told of the Government’s inability to pay a contractor or service provider.
“However, nonpayment of our taxes is often the leading cause of this occurrence. To this end, Mr. Speaker, I take this opportunity to congratulate the many who continue to pay their taxes and licenses on time.
“As a country, we have made significant progress without imposing additional taxes on citizens. Thanks to the inflows from the CBI Programme, which we have used to offset some of the capital costs that otherwise would have had to be borne by residents,” he added.
Under the CBI program, foreign investors are granted citizenship of Dominica in return for making a significant contribution to the country’s socio-economic development.
McIntyre told Parliament that the Government, as it prepares for a further transformation of the island, will, this year, increase collaboration with the private sector.
“We will establish a committee comprising individuals from the public and private sectors to examine economic and social issues and make policy recommendations to create a more conducive environment for further investments.
“The committee’s work will include input to address the issue of labor, including farm labor, as several jobs are available in Dominica, but there is a scarcity of individuals to fill these jobs.”
He said the committee would review the wages in Dominica and make clear recommendations regarding the minimum wage rate.
“The Government will also be undertaking a review of the corporate income tax and will seek feedback from this committee. Some amendments can be made, in particular, to attract significant investments, increase the number of job opportunities, and allow businesses to self-insure and protect their investments.
McIntyre said that another critical issue that the Public-Private Sector Committee will look into is the price of goods in Dominica, noting that the Roosevelt Skerrit government has removed import duty and in some instances, value-added tax (VAT) on several essential items used extensively by Dominicans.
He said goods such as flour, rice, milk, baby formula, sugar, adult and baby diapers, agricultural and fishing inputs, machinery and equipment, and animal feed, among others, enter Dominica free of import duty and VAT.
He said that the Government is deeply concerned that notwithstanding the reduction in charges, the shelf prices of many of these items remain very high.
“For example, the Government removed the 15 percent VAT and duty on adult and baby disposable diapers. However, citizens have yet to benefit from the Government’s efforts to make these products cheaper.
“It is now time to have a conversation about this critical matter so that we can devise a plan of action to achieve the desired result, which is a reduction in the price to consumers. We must work to protect our vulnerable and their families and provide the enabling conditions to reduce the cost of living.”
McIntyre also announced the establishment of the Tenancy and Rent Commission, saying that “many of our citizens live as renters or tenants, and it is crucial that we provide more robust protections to safeguard them against exploitation and guarantee access to safe and affordable housing.
“The Government of Dominica is concerned about the exorbitant prices and poor quality of some rental properties available to tenants. The Tenancies and Rent Control Act is in place, and a tribunal has been established to address rental disputes.
“However, to improve rental conditions, protections, and rights of both landlords and tenants, the Government of Dominica will establish a Tenancy and Rent Commission to address issues such as regulation of rent, protection against unjust eviction, and the enforcement of health and safety standards in rental properties.”
McIntyre said that the Commission’s initial action will be to pursue amendments to the Tenancies and Rent Control Act to improve regulations and clearly outline the rights and responsibilities of landlords and tenants.
Additionally, McIntyre told legislators that the Commission will oversee rental agreements and conditions, field queries, and refer disputes to the Tenancy and Rent Control Tribunal.
Debate on the budget will begin on July 29.
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