No VAT increase – PM

Dominica’s finance minister has stated categorically, that the government does not intend to increase the existing 15 per cent value added tax – VAT.

Prime Minister Roosevelt Skerrit, in his capacity as finance minister, made that clear in a radio appearance earlier Tuesday (July 10 2012).

“Do not expect (in the July 17 budget) an increase in the rate of VAT in Dominica,” he said.

“What I maintain, in small islands like ours, you cannot go beyond 15 per cent VAT.  And this is why this government will never increase the rate of VAT in Dominica,” the prime minister explained on Kairi FM’s Heng programme.

He also indicated there, that the VAT was also very unlikely to be reduced any time soon.

“In a small economy like ours, anything that is less or higher than 15 per cent is not going to be good for the economy,” PM Skerrit said of the controversial tax.

Speaking at an earlier function in the Bense area to launch a new water project in that district, the  Prime Minister rejected as “not sound advice at this time” suggestions by the opposition for the removal of the Value added tax.

“I hear today of people who say they love Dominica talking about all sort of nonsense about what the Government should do or should not do in this upcoming budget. People talk about removing VAT altogether but with no alternative suggestions,” PM Skerrit said.

”You remove VAT then what do you replace VAT with? How is Government going to pay public officers and to help maintain goods and services” the prime minister queried.

He defended the 2006 introduce of the tax as one that was necessary, and pointed out that because of the global financial crisis several countries around the world have had to increase taxes, including the VAT.

“What we have seen in other countries is that not only have they maintained the VAT legislation, they have increased the VAT.  In the United Kingdom for example the VAT there is 20 per cent, in Barbados it was increased to 17.5 per cent.

The VAT was officially introduced in Dominica in March of 2006 and is being described as a significant revenue earner for the Government.

It replaced the consumption tax of twenty percent (20%) on most goods, the sales tax of seven point five percent (7.5%) on all goods, the hotel occupancy tax of five percent (5%) and the entertainment tax.

The VAT was imposed at a general rate of fifteen percent (15%). A reduced rate of ten percent (10%) was also applied to hotel accommodation.

Additional information supplied by GIS.

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61 Comments

  1. Dorian matthew
    July 12, 2012

    It’s the high duty rates that’s choking this country economy. I say bring the duty down to 5% and watch business boom and many of us would come back home.

  2. morefire
    July 11, 2012

    the problem with Dominica is not really the vat its the duty on customs. this is what that is killing Dominica and Dominicans. ease up on customs duty at least for food,clothing and shelter. customs is sucking the country dry!!

    • Malatete
      July 11, 2012

      It is an axiom of business that a country with high import duties has a weak economy.

  3. Lalay
    July 11, 2012

    its time the ATM start giving coins.

    • 1979
      July 11, 2012

      LOLOLOL

  4. Soldier
    July 11, 2012

    WAIT WAIT WAIT!
    So if VAT is not going up and not going down .. why did the PM bring up this talk?? This is strange!

    • budman
      July 11, 2012

      because somebody asked about it., duh!

  5. OK
    July 11, 2012

    VAT should not be the main revenue for the country, on the other hand those stupid persons who think that the VAT should be removed think again. In all other countries around the world people pay taxes, mainly on everthing you could think of. The only thing we paying d/ca is a 15% VAT and we’re complaining?? It’s hard everywhere but we have it nice compared to other countries. The other countries using the tax money to give grants and loans and here we can have tax to generate our own revenue? Allu going overseas and paying tax on even a TV box in y’all homes so stop being so negative about everything. Not because it’s called the oposition that means y’all have to oppose everything the PM does. SMH…

  6. twlight
    July 11, 2012

    if we were marketing our products and exporting more than we are importing more revenue would come into the country and we wouldn’t need VAT

    • Malatete
      July 11, 2012

      Twlight, good thinking but we can only do so if what we can compete on price, quality, service and delivery performance in the world outside Dominica. As it is right now we are even importing bottled water from Trinidad, which retails at a lower price than our own product, despite the additional transpiort costs involved.

      • Anonymous
        July 11, 2012

        They need to ease up on our local manufacturers. Give them fellas opportunity to compete. Utility especially electricity so high it hard for them man to produce at reasonable costs. Our climate just so hard. They need a break man.

    • 1979
      July 11, 2012

      these guys in some elevated discussions here boy!! great stuff guys…

  7. ROSEAU VALLEY
    July 10, 2012

    What can one say? No increase is better than an increase. It is some sort of good news. At least the active members of the People’s Virtual Parliament (PVP) on DNO helped in shaping this decision through their blogging in opposition to the proposed increase of the VAT. This tells me that the hosts and callers to Linton’s Between you and me, Matt in the morning, Rise and Shine with Angelo and Politics are being heard notwithstanding the attempt to avoid these hot spots in favour of the Heng on Kairi. Nevertheless, the message was well targeted and it got home. Give the PM credit for listening with one ear unless it was never the intention to increase the VAT but an attempt to use psychology on the people. You know- to throw it out there as a test of our resolve and to gauge the reaction before taking a final decision in the style of the PM to consult the people before presenting the people’s first budget

    • PROF. WIKILEAKS
      July 11, 2012

      Roseau Valley, this was never the case. Just to put you mind at ease the PM does not pay attention to the hatred ,anger and venom of the irrelevants of Q95 you mentioned above.

      Prayer from the masses is better than hatred from a few.

      You need to put your ears to the ground and maybe you will hear much more.

      • Malatete
        July 11, 2012

        Prof., we must be living in a different world! I listen to both Q95 FM and Kairi FM – not so much to DBS, which has become as bland as a cold broth with no pepper sauce .Are you sure you don’t have Q95 mixed up with Kairi, which fits your epithets more appropriately? The PM is big enough to stand up for himself, so for the life of me I can not understand why a self appointed bunch of minions thinks it necessary to put up a rear-guard defence on his behalf, using language that my mother would have made me wash my mouth out for and certainly does not do the P.M.s cause any credit.

      • 1979
        July 11, 2012

        ROTFLMAO :mrgreen:

        that was sick malatete

      • 1979
        July 11, 2012

        Prayer from the masses is better than hatred from a few.

        prayer wikileaks?

        what now?? really??

  8. Cerberus
    July 10, 2012

    This is a wise decision as an increase in VAT would be counterproductive to Govt. revenue under the present circumstances. The P.M. quotes countries with a higher rate of VAT than Dominica, 20% in the case of the U.K. for example.
    Whilst this is correct he conveniently omits to mention that the U.K. does not apply this rate universally. For instance, their VAT rate for electricity is only 5%, against our 15%. Basic food items are zero rated, as are children’s clothes, books & magazines and equipment for disabled people, amongst others.
    The biggest difference, however are the rates of import in the E.U., also applicable to the U.K., which are significantly lower. For exmple, the import duty on vehicles coming from other E.U. countries into the U.K. is zero, whilst those originating from outside the E.U. (such as Japan or the U.S.A) attract a rate of only 10% and the highest rate of import duty is for non-E.U. pick-ups and commercial vehicles at 20%. Since VAT is charged on the landed cost of of such vehicles, just like in Dominica, the actual amount paid to Govt. is substantially higher in Dominica. It should be clear that it is not only the VAT, which puts an enormous burden on us but also high import duties on which this tax is levied.
    Island living definitely is not cheap!

  9. Real
    July 10, 2012

    t Lucia is now implementing vat,,st kitts an st Vincent did after us,,I remember wen one of the countries after us the pm used Dominica as an example,,,let’s be real I was against d vat but now d vat keeps d country always capable to pay certain police teachers ect.during UWP time I was a young teen an rembers civil servants not getting paid for months,,but now d vat can mentain ..I hate d customs but dats y no eccb country can’t hav free port ..d custom revenue keeps d ecdollar circulating,

    • Anonymous1
      July 11, 2012

      Ur a L I A R or ur mistaken salaries were paid on time in UWP days…money was meeting money

    • MET YO
      July 11, 2012

      8-O lol….especially allu does do it man..

      where those liars there does come from nuh

    • tony
      July 11, 2012

      it was really in the labour party times,you got ur info wrong(remember in uwp the off shore business was booming ,then labour won,then close it to get a off the black list

    • Truth B Told
      July 12, 2012

      Well said, I too remember when the treasury was always empty in the dark days of the UWP government. Thank God it didn’t last long and Dominicans too smart to ever let it happen again!

  10. anonymous2
    July 10, 2012

    So why don’t you reduce it as well as the customs duties?? Why don’t you get this country moving forward instead of stagnating it.

  11. July 10, 2012

    i remember when UWP was going to rasie 3% VAT. All hell break loose.

    Now at 15% the hypocrites are haying nothing

    • Malgraysa
      July 11, 2012

      Check your memory friend. VAT was only introduced in 2006 by the Labour Govt., when the UWP had been out of power for six years already. They are not my flavour but we should get our facts right.

      • MET YO
        July 11, 2012

        I think the person is talking about the idea which came up during UWP time to introduce VAT, but much lower than 15%. This idea which came up during the UWP time has been used by the DLP Machinery to justify the VAT.

        But again, not everyone has the mental capacity to understand the difference between 15 and 3.

        Skerrit stated no increase in VAT, but he did not state no new taxes.

        I await Tuesday’s budget.

  12. jojo
    July 10, 2012

    Smart men/women, NO TAX . fooools Run DA.

  13. dissident
    July 10, 2012

    Our unemployed paying more VAT than anyone in this country…..just because they don’t have a job. I wonder if all dem Chinese stores does pay their VAT.

    Sometime around 2009/2010, or was it election time. Anyway. Gardahkan was threatened with a $300 000 a month fine if he failed to complete Lot 2 on time.
    I WAITIN TO HEAR DE ANNOUNCEMENT………….STILLLLLLLL.

    And his workers that he not paying and owing how many fortnights pay STILL have to pay VAT in de shop.
    U know what dat money can do for us?

    VAT haven’t been able to increase farm production. It has not increased our Tourist arrivals. Bigger planes not coming to our shores. Unemployment keep rising and VAT cannot help.
    We fixing our own potholes with tarish.

    If our highly paid public officers and ministers could design and implement some serious growth and development programs and policies we wouldn’t need any VAT

  14. Nature isl
    July 10, 2012

    Read my lips? No new taxes

  15. huh?
    July 10, 2012

    Mr PM you have a point while it is my opinion to disagree with some of what you say.I dont think vat should be the main revenue for this control, you all in power just using the people of Domininca,the government must invest,if you are educated why cant you or your advisers see the real way to grow the country economy? Invest and creating busineses, this will increase employment and revenue. dont just talk , about VAT VAT VAT.Use allu heads.We need Agro-processing , where cant the Government just invest?Why cant the government invest in hotels? and other business? Why are you all just killing us with taxes, Everything increasing except the wages smh.None of allu politicians not getting my vote until i see something done.

    • tony
      July 11, 2012

      And to make things worst they gave them self’s a big raise after the vat but people said live them alone they deserves it

  16. Tourist
    July 10, 2012

    If anything else increases on this island i’m gone. Everything here EXPENSIVE. jahhhhhhhhh

  17. d
    July 10, 2012

    thank god for VAT thats we poor people can break our back to pay it while labour can just give liat 8 million hmmmmm

  18. July 10, 2012

    i have a gut feeling that most of us who are already struggling will be crying when the budget is read next week

  19. July 10, 2012

    The vat has been a real killer for me and i know for a whole set of other people

  20. Jacky Chan
    July 10, 2012

    Somebody talk some sense into this …. head and I ‘m glad for that. How the heck we survive in Dominica is beyond me. I however agree that to remove the VAT would be economic suicide but the only reason we are at the mercy of this VAT is because of the dismal economic policies of the Skerrit administration. We were told that the VAT was necessary to fix the UWP mess up. Now that was 12 years ago and what do we have now? An economy that is stuck in neutral gear at the top of a heel the wheels blocked by a overstressed VAT system.

    Dominicans brace for impact. It has been long recognized that government administrations reaches their peak after 10 years in office. If we expect this administration to get better we are hoping against the odds. After 10 years politicians get complacent not withstanding most of them set up themselves financially for life so do they really care?- Let your conscience be your guide. If after 13 years this administration never understood the basics of our national economy why should I think that this incompetent bunch will get it now.

    • MET YO
      July 10, 2012

      correction, we were told that the 4% stabilization levy was put in place in 2002 to fix the “mess of uwp”.

      The Vat came in later 2005 into 2006.

      Dominicans were warned. They will feel now.

    • Lapo L'ai
      July 10, 2012

      Jacky Chan i find it very difficult to agree with you although i’m not a labourite/or supporter.Have you noticed that most of the small businesses in Roseau especially have not expanded in the past 25 years regardless of which party has been in office? Have you also noticed that when non Dominicans come to our shores to oppen businesses how some of our political leaders do their utmost to soil these peoples names? Do you remember the Ching Chong go home demonstrations lead by the honourable Edison C.James? What about our work ethics? etc etc.

    • MET YO
      July 11, 2012

      correction, we were told that the 4% stabilization levy was put in place in 2002 to fix the “mess of uwp”.

      The Vat came in later 2005 into 2006.

      Dominicans were warned. They will feel now

  21. ....................
    July 10, 2012

    according to PM VAT not going to increase but lets see what NEW taxes will be included in this years budget…..

    one thing i know with policy makers, if the masses don’t agree for vat to be increase the increase may just be placed in a different or under a different head

  22. bbm
    July 10, 2012

    every country needs taxes to maintain the economy….

    TAXES are essential

    • Smh
      July 10, 2012

      bbm am a labourite and am not sayin no but compare dominica to that of the other countries . AFTER THEIR COUNTRY IS WELL DEVELOPED , THEY RAISE THEIR VAT TO MAINTAIN IT. We really need some flow or money some way some how.Cuz trust me things really RUFF !

      • 1979
        July 10, 2012

        THIS IS WHAT WE have been saying all along…..how you expect to construct the roof on the ground and build the house under it… the first thing mister should have done is pump money into getting our professionals working and establish thriving economy. then we can better foot the bill for the “infrastructural development” we all SO LOVE TO BOAST AND SEE??? but unfortunately what we have is spoilt stepchildren who think everything is look pretty dress up, don’t know nothing about working for what they want, nothing about cost and value, nothing about priorities… just want to boast,

        MY PM GIVE ME DAT DOE!!!!!!!!! pshhhhhhht please!

      • Real
        July 10, 2012

        FYI,st Lucia is now implementing vat,,st kitts an st Vincent did after us,,I remember wen one of the countries after us the pm used Dominica as an example,,,let’s be real I was against d vat but now d vat keeps d country always capable to pay certain police teachers ect.during UWP time I was a young teen an rembers civil servants not getting paid for months,,but now d vat can mentain ..I hate d customs but dats y no eccb country can’t hav free port ..d custom revenue keeps d ecdollar circulating,

    • July 10, 2012

      yes taxes are essential but how can more tax be removed from the same little salary?

    • Corrupt_Bastards
      July 10, 2012

      @bbm Taxes essential Go to Hell! Go to Hell! Go to Hell!!

    • shame, Shame,SHAME!!
      July 11, 2012

      do some research…. u seem to be someone with no common sense. what is in ya head? Rubbish!

  23. July 10, 2012

    I am very disappointed in DNO,who is always carrying second hand information from the Skerrit Labor Party Government,its either from GIS or KAIRI radio.My advise to the management of DNO is to refuse to carry any news item from Skerrit or the government unless they are invited, not only to carry the news from the government but also ask questions and seek answers relative to the news in question.DNO must understand that its popularity with the people of Dominica demands that we get the news,like the saying goes from the horses mouth.

    • A
      July 10, 2012

      It sound like you are paying for the news man.

    • 1979
      July 10, 2012

      not to knock DNO but there is a point at which a business should take stock of it’s growth and throw out some new branches. Not columns and so but backend. journalists, investigators and such.

      the front end is great. but yall ready for a more robust team at the back end…..but HEY!!!!!!!! the moderators and admin are fine…..DON’T CHANGE THEM….

    • 4progress
      July 11, 2012

      @ Doc Lov….. 100% agree.

      ..Given that the parliamentary opposition is ineffective DNO would be more respected by posing searching questions of their own to all and sundry. At the moment it serves as a “secondhand talking shop”.

      COME DNO YOU CAN DO BETTER THAN THAT.

      I am sure some are willing (expenses paid only) would love to carry out research and proper investigation, writing reporting with pictures and all.

      DNO HELPS US TO HELP YOU AND MAKE THIS SITE THE BEST EVER………

  24. Reading btw the line
    July 10, 2012

    I remember when the ISP wanted to introduce the VAT at a lesser percentage than what we currently hv. I remember that they were made to look like the devil himself. And years later, when the 15% was implemented it look like manner from heaven and we all lapped it up. They managed to make 15 % look awesomely sexy and make us like it……yes! That’s what I’m talking about. I love my government.

    • Reading btw the line
      July 10, 2012

      I meant uwp. Auto correct is a hell of a thing. …..hehehe

    • MET YO
      July 10, 2012

      sober up..

  25. Smh
    July 10, 2012

    So Barbados 17.5 % and America 20% . AND ??? Can you compare Dominica to these countries ?

    • Ras Fatha
      July 10, 2012

      i bet those people in Barbados and America makign much more money than us in Dominica, u cant compare the 3.. Not even on a sunday

    • block 44
      July 10, 2012

      the pm should lower the vat tax by 5% and in crease the property tax by 50%.because we dominicans ain,t pay …… when comes to property taxes, but yet we want the best of every thing.what do you beleive a country can do with $3.00 taxs for a two bedroom house. dominicans any thing free take two ,and shut up.

  26. Smh
    July 10, 2012

    It was not suppose to be that high in the first place,so obviously he will not raise it.

    • A
      July 10, 2012

      Base on our economic situation at the time ,the govt didn’t have a choice .

    • ideal
      July 10, 2012

      dont trust him now we Dominicans have to pay for all the borrowing he doing, maybe the chinese man who was here last week want there payments owing them. Dominica will soon be own by them

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