ROSEAU, Dominica, CMC—Prime Minister Roosevelt Skerrit said Wednesday that the government will review the island’s minimum wage and will also reduce corporation taxes this year.
“I would say to you, concerning the economy, our revenue for the first six months for the financial year 2024-25 is better than the same period 2023-24,” Skerrit said during a life interview with the state-owned DBS radio.
‘Our revenues are doing much better this financial year than in the previous financial year, which is a sign that money is being spent in the economy.
“We have seen an increase in corporate tax in Dominica, and this is why we are looking at in 2025 at addressing the corporate tax and reducing it from what it is now 25 percent…so that we can keep more money in the private sector’s had hope they can invest more so we can increase the tax base of the country,” Skerrit told radio listeners.
He said in 2025. His administration is looking at a “further review of the minimum wage to allow persons who are reliant on the minimum wage payment schedule to be able to be given a better pay to be in a better position to withstand the increase in the price of goods and services in Dominica.”
Skerrit acknowledged that the cost of goods and services had increased over the past few years but said that this situation was not confined to Dominica alone but to many countries worldwide.
“…go to Australia, they will say the same thing. Go to China. They will say the same thing. The country in the world you go to now, people will have complaints and legitimate ones. The reality is that the cost of goods on the shelves worldwide is a major preoccupation with every single government and citizen”.
He recalls that during the last presidential election in the United States, there were calls for price controls in a free market economy.
“The candidates had to backtrack because there is a backlash on this …contrary to the spirit of a free market economy, and in any event, it is tough to have price control on every item on the shelf.
“So it is a huge challenge for this country, and what we try to do in Dominica …is not to impose any real direct taxes on people, ensure that we continue to invest in those major projects so that people can have work.”
Skerrit said that the government would continue investing in housing to make it more affordable to Dominicans.
He told radio listeners that the government is also under obligation to pay various taxes on goods and services, which is why, in some instances, “you hear government might be owing a service provider or two.
“The cost of running Dominica increased dramatically because of the rise in the cost of goods and services. We pay the taxes as every citizen in Dominica, we don’t get VAT (Value added tax) free as a government, we pay VAT….,” he added.
But Skerrit said he believes that once the world can stabilize, “and we get rid of this war between Russia and Ukraine to allow for more grains to be accessible by the international community, and we could get out of this situation with Israel and Hamas, and we are seeing some stabilization taking place in Syria…we can see some reduction of the cost of living impact on people.”
“We will be able to buy more with the dollar and ease the pressure on people,” Skerrit said, adding that in the meantime, it would also be unsustainable for the government to subsidize the price of goods and services.
“In any event, you will not be able to afford it for any long time,” he said, noting that regional countries have been making one-off concessions, particularly around the Christmas season, to ease the effect of the cost of living on their populations.