The Barbados Chamber of Commerce on Tuesday urged the government to fast-track the implementation of its digital transformation tax credit, warning that rising costs and growing cybersecurity threats are pressuring businesses to act now.
Vice President Philip Lewis told a CEOs Roundtable the chamber had engaged the relevant ministries to offer its assistance in expediting its implementation.
Earlier this year, the government announced a digital transformation tax credit under the Appropriation Bill, offering a 100 per cent tax credit incentive for companies engaged in digitising or reengineering their business processes and upgrading their systems. It was to take effect from April 1 to June 30, 2025.
With a focus on catalysing a rapid adoption of digital technologies, the initiative is further slated to allow companies to fully utilise the tax credit within the same income year upon the completion of their digital transformation projects.
Noting that while the chamber welcomes the tax credit, Lewis stressed the need to make it operational as soon as possible to ensure businesses can access much-needed financial relief.
He said: “The chamber applauds this initiative and would like to see its implementation as soon as possible for the benefit of our members and all businesses in Barbados.
“So you’ll be pleased to hear the chamber has been in communication with the Ministry of Finance to see where input or assistance can be offered to help move things forward.”
The chamber official further stressed the importance of establishing the necessary protocols to facilitate digital readiness for the business community.
He said: “We must be fully aware that digital transformation is not an easy or simplistic process. A few years back, we could read a hundred articles on the numerous advantages and business benefits going digital brings to any organisation, as if it were the solution to every business problem. But we know better now.”
Though small, Lewis noted that the rise of ransomware attacks also targets island states like Barbados.
“We must guard not only our physical presence but also our virtual presence, and secure and protect our data,” he said. “This calls for data governance protocols to be established and implemented.”
Lewis also warned about the high stakes of poor execution, noting that the costs of digital transformation rise dramatically if not done properly.
“The fact is digital transformation comes at a cost, and that cost increases significantly if it’s not done properly,” he said.
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