SENATOR Andre Worrell has lauded the adjustment made and acknowledged the benefits accrued to the economy from the increase of the Value Added Tax in Barbados, during challenging economic times.
He added his contribution to the debate on Wednesday in the Honourable Senate during the debate on the Value Added Tax (Amendment) Bill, 2012, where he noted it happened at a time when Barbados was facing a challenge and needed to find a way of enhancing revenue collection.
“…Through this measure and containing expenditure, we were able to reduce the fiscal deficit. It was done at a time which was difficult for Barbados but the benefit was that it was a small sacrifice to be made but the long term objective has done a lot for this country; in terms that we can have some confidence that the Medium Term Fiscal Strategy, which was by this government in 2010 is showing that the government has a plan and is working towards a plan to stabilise the economy of Barbados and also to take it forward.”
“We are doing it in such a way that we are not putting unnecessary burden on the people of Barbados but everyone has to make sacrifices,” he explained.
Senator Worrell pointed to the stress that has been placed on Barbados’ main tourism markets and the fact that Europe, including Germany and even closer to home Trinidad did not receive a glancing blow from the recession, even though the latter appears to be seeing some turnaround in 2012.
“Strong economies such as Trinidad which has a number of resources, oil, strong manufacturing, are facing challenges as well.
“Here in Barbados we do not have the resources, but have to identify ways of increasing our revenue so that we can pay our bills. And one of the mechanisms that came to us and which is a good mechanism to implement, is raising the revenue collected through VAT and it has worked,” he reiterated.
The Senator also made the point that when the DLP came to office in 2008, there was a large amount of debt which it was forced to take on board. “In the years of plenty nothing was put aside to pay off that debt but we had to bring all of these things to book. We are told about VAT revenue which the previous administration would have received but we can’t find any of it,” he lamented.
He pointed to a need to reduce the country’s high fuel bill and to focus more on renewable energy projects. Senator Worrell also made a case for the need to pay close attention to goods on the shelves so that when the VAT is removed, that savings can be seen and shared among Barbadians.
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