ROSEAU, Dominica, CMC – The Dominica authorities offered an EC$1.33 billion (One EC greenback equals 0.37 cents) funds to Parliament on Friday, indicating that it’ll finance the fiscal bundle by way of a mix of the federal government’s income, loans, and grants.
Finance Minister Dr. Irving McIntyre knowledgeable legislators that the recurrent income is EC$1.1 billion, with capital income set at EC$5.2 million, grants equal to EC$117.7 million, and loans at EC$88.8 million.
He mentioned that the loans have already been authorised by Parliament and, along with the grants, are all earmarked for capital tasks. He informed the opposite capital tasks, together with the recurrent expenditure, will probably be financed by the EC$1,103.7 million in recurrent income estimates.
In an almost three-hour presentation, McIntyre knowledgeable legislators that the recurrent income estimates comprise tax revenues of EC$443.9 million, EC$635.0 million from the Citizenship by Funding (CBI) programme, and different recurrent revenues, together with charges and licenses, totaling EC$24.8 million.
He acknowledged that, out of the EC$443.9 million in tax revenues, the federal government anticipates amassing a complete of EC$46 million in respect of arrears of taxes, licenses, land, and hospital charges.
“Let me at this level commend the employees of the Inland Income, the cops, and the employees of the Ministry of Housing for his or her extraordinary efforts in arrears assortment over the last Fiscal 12 months.
“Final fiscal yr, the federal government collected EC$47.6 million in arrears. Ninety-five % of this quantity was arrears of taxes collected by way of the efforts of the employees of the Inland Income Division—a rise of 30 per cent over their earlier yr’s efficiency; whereas 4.6 per cent was collected because of the efforts of the Police,” he mentioned.
Final yr, McIntyre offered a fiscal bundle totaling EC$1.7 billion, with the Roosevelt Skerrit authorities urging residents to fulfill their tax commitments to the nation.
He mentioned this yr, the federal government is urging residents and residents to play their half and make their monetary contribution, on time, when required, for the working of the state.
“We’ve got relied closely on the CBI over the previous 10 years. This has enabled the federal government to implement a spread of developmental and social tasks and packages with out rising taxes.
“Nevertheless, on condition that a lot of the CBI sources are presently being allotted to the development of the worldwide airport, and the worldwide coverage modifications which might cut back CBI inflows, now could be the time to speed up efforts to turn out to be much less reliant on CBI,” McIntry mentioned.
Beneath the CBI programme, overseas traders are granted citizenship of Dominica in change for making a considerable funding within the island’s socio-economic improvement.
McIntyre acknowledged that, moreover, the federal government’s goal is to attain a major surplus of no less than one % on this fiscal yr and no less than two % thereafter, in keeping with the necessities of the Fiscal Accountability Framework Decision authorised by Parliament in 2021, which takes impact from Fiscal 12 months 2026/2027.
He mentioned that in consequence, the federal government is implementing a raft of latest tax measures, together with a freeway upkeep levy that was first launched in Dominica in 2015 and had generated EC$10.4 million as much as the time it was repealed within the fiscal yr 2022/23.
“With the affect of local weather change, and the rise within the quantity and weight of the automobiles on our roads, highway upkeep and rehabilitation have turn out to be extra expensive. Subsequently, efficient October 1, 2025, the freeway upkeep levy will probably be reintroduced on the similar EC$100 for personal automobiles and EC$50.00 for bikes,” he mentioned, noting that the levy for industrial automobiles, truckers, dumpers, and trailers will vary from EC$150 to EC$500.
“That levy is payable to the Comptroller of Inland Income annually on the time of cost of the motorized vehicle licence payment prescribed underneath the Autos and Highway Site visitors Act,” McIntyre mentioned, including that given the rising value related to the upkeep and administration of EcoTourism websites, there will probably be payment changes, efficient October 1, 2025, starting from US$20 for a day move to go to any ecotourism web site or websites to US$50 for every week move.
“…the present US$3.00 for a web site go to for pre-sold organized excursions to any ecotourism web site besides the Waitukubuli Nationwide Path; and the charges for visits to the Waitukubuli Nationwide Path stay unchanged. Importantly, these consumer charges don’t apply to residents of Dominica.”
McIntyre acknowledged that because the final fiscal yr, the federal government has elevated its funds allocation for the advertising of ‘Vacation spot Dominica’, which now stands at EC$15, noting that additional enchancment is required as soon as income permits.
“To defray a few of the advertising and elevated passenger processing prices, efficient January 1, 2026, guests to the island will probably be required to pay a payment of US$30 per go to. Once more, this payment is not going to apply to residents of Dominica,” he added.
The Finance Minister mentioned changes are being made to the costs on the import of motor automobiles, noting that “the variety of derelict automobiles on the roadside in Dominica is unlucky, unpleasant and inconsistent with our branding because the Nature Isle.
“As we communicate, the federal government, by way of the Police, is endeavor an enormous clean-up train by eradicating these derelicts from the streets to the land subject. That is proving to be a really expensive train, and the state should discover some technique of recovering the price from the homeowners.
“Within the meantime, the federal government is taking motion to cut back the import of previous automobiles and encourage home buying and selling of used automobiles, by adjusting the costs to be paid on the Customs.”
McIntyre mentioned that the federal government has determined to evaluate the environmental surcharge on imported automobiles and that whereas these manufactured 5 years or much less can pay a one per cent CIF (value, insurance coverage, freight) worth, different imported automobiles can pay charges starting from EC$3,000 to EC$10,000, particularly automobiles manufactured greater than 15 years in the past.
“As well as, the excise tax charge on motor automobiles manufactured 10 years or much less, which presently attracts 28 per cent excise tax, will probably be lowered to 25 per cent. The modifications to the environmental surcharge and the excise tax charges will take impact from October 1, 2025,” McIntyre mentioned, including that to attain additional authorities’s goal of encouraging the import of newer automobiles and home buying and selling of used automobiles, an individual who imported a automobile and acquired waiver or exemption of import obligation, worth added tax or excise tax on the time of import is not going to be required to pay any tax to the Comptroller of Customs or the State if that automobile is offered greater than 5 years after it was imported.
He acknowledged that this coverage applies to any automobile offered after July 31, 2025.
The federal government acknowledged that it’s “totally conscious” of the considerations of residents relating to the rising value of residing and has taken agency, focused motion to supply reduction the place it issues most.
McIntyre mentioned that one measure already carried out is the removing of customs duties and Worth Added Tax (VAT) on a spread of important meals objects.
“This coverage is designed to ease the monetary burden on households by lowering the price of primary items that type a part of the day by day eating regimen of our folks,” he mentioned, itemizing a number of meals and different merchandise benefitting from the initiative.
“To proceed supporting households throughout the nation, we will probably be increasing the checklist of exempted objects within the upcoming monetary yr for six months,” he mentioned, including that additionally it is important for Dominicans to look at their consumption habits.
“Whereas authorities has taken steps to ease the burden, there are further methods during which we, as people and households, can cut back bills,” he mentioned, including that one such measure is the revitalization of yard gardening, which may present recent greens and herbs year-round, decrease meals payments, and promote more healthy consuming.
“We additionally encourage residents to buy native produce, which is commonly extra inexpensive and brisker than imported options. The federal government will proceed to implement insurance policies to ease the monetary stress on our folks. As residents, we should domesticate a tradition of monetary mindfulness, resourcefulness, and group cooperation. It’s this collective effort that may make our society extra resilient and higher outfitted to face up to international financial pressures.”
McIntyre acknowledged that, concerning the minimal wage, this present administration is the one one since 1989 to have taken decisive motion to evaluate and enhance the minimal wage in Dominica.
He mentioned the Labour Requirements Act grants the minister the authority to repair a minimal wage by Order, and that in 1997, a minimal wage evaluate was ordered. Nonetheless, the suggestions of the Minimal Wage Advisory Committee had been by no means carried out.
“It was not till 2008, underneath this administration, {that a} revised minimal wage was launched. This marked the primary actual effort to uplift the incomes energy of low-wage staff,” he mentioned, including that on the time of approval of the brand new minimal wage in 2021, the federal government dedicated to endeavor an extra evaluate in 2023.
“Nevertheless, this evaluate was delayed because of the challenges introduced on by the COVID-19 pandemic. Accordingly, and in step with… the Labour Requirements Act, the Minister for Labour will appoint the Minimal Wage Advisory Board to evaluate present wage charges and to make suggestions for brand spanking new minimal wage ranges.
The federal government has introduced that the brand new really useful charges will take impact on October 1, 2025. It’s our honest hope that this evaluate will result in significant enhancements in wages which not solely meet primary wants but additionally help the aspirations of our folks for a greater, safer and dignified life,” McIntyre” added.
He mentioned that the federal government will proceed to pursue strategic initiatives aimed toward bettering the funding local weather in Dominica, including, “Our efforts are targeted on creating an enabling setting which attracts new funding, stimulates non-public sector progress and creates financial alternatives for our folks.”
He mentioned,” Main infrastructure tasks, equivalent to the development of the worldwide airport, the event of the Cabrits Marina, and continued progress in geothermal vitality exploration, are laying the inspiration for elevated enterprise exercise.
“These developments will considerably improve our connectivity, cut back vitality prices and broaden the companies sector, thereby positioning Dominica as a extra engaging vacation spot for overseas direct funding and native enterprise alike,” he mentioned.”
He mentioned the federal government recognises the non-public sector as an indispensable engine of nationwide improvement. And it has due to this fact resolved to supply focused, significant help to each native and overseas traders by way of a fiscal incentives regime, administered by the Make investments Dominica Authority.
“As we communicate, 41 corporations are benefitting from a spread of concession packages. These embrace exemptions on import duties for lodge provides, operational gear, automobiles, and uncooked supplies.
“Qualifying” companies additionally take pleasure in a tax vacation on eligible expenditures and VAT waivers on capital imports till they start operations. During the last 18 months, the federal government has granted concession packages to 21 companies,” he mentioned, “including that their proposed investments over the subsequent two years whole roughly EC$79.5 million and are anticipated to create 242 everlasting jobs and generate further short-term employment.
McIntyre acknowledged that the manufacturing sector is gaining vital momentum, with two of Dominica’s producers increasing and two new manufacturing enterprises set to launch this yr, collectively injecting EC$35 million into the economic system.
“Moreover,” he mentioned, the native non-public sector is earmarked to take a position EC$8.5 million within the rising tourism sector, significantly in lodging companies.” Debate on the fiscal bundle is because of start on Monday.
