The Institute of Chartered Accountants of Barbados (ICAB) is pressing the government to address inefficiencies in the tax system, introduce long-overdue reforms, and provide greater clarity on tax incentives when the national Budget is presented on Monday.
Chief Executive Officer of ICAB, Lisa Padmore said that while the 2024 Budget contained some positive measures, uncertainty surrounding their implementation has made it difficult for businesses to plan and invest.
One of the major concerns, she noted, is the lack of information on tax credits introduced last year.
“Here we are in the first quarter of 2025, and the business community has no information about how the credits are structured or would be applied,” she told Barbados TODAY.
“Companies need certainty to make decisions regarding potential investments, and therefore, a call for timely information and guidance on these credits is needed.”
ICAB is also renewing its push for amendments to the Income Tax Act and Value-Added Tax (VAT) Act, arguing that the current penalty system is unnecessarily harsh.
The organisation has recommended eliminating late filing fees for businesses that submit zero returns and allowing taxpayers five business days to make payments after filing before late fees and interest charges are applied.
“TAMIS applies penalties and interest one second after midnight of the filing deadline,” Padmore said. “Since the system has been implemented, users are plagued with errors, crashes, and denial of service as the filing deadline gets closer. The objective should be the smooth and easy collection of taxes rather than the attempted collection of penalties and interest.”
Another major area of concern is the Profession, Trade, and Business Registration Act CAP 373, which ICAB says is outdated and no longer serves its original purpose.
The law, which has been in place since 1979, was initially designed as a revenue-raising measure rather than a regulatory tool.
Padmore noted that many of the professions listed under the Act now have their own self-regulatory bodies, making government oversight redundant in some cases.
“We recommend removing all trades and professions where there is already a requirement to be a member of a Self-Regulatory Organisation (SRO),” she said.
“Similarly, professions that are already governed by specific legislation under which a person is regulated, [such as doctors under] the Medical Registration Act, should be removed as well.”
She shared that ICAB has been actively engaging with the Financial Services Commission to propose legislative changes aimed at making Barbados more competitive in the captive insurance and international securities markets, noting the view that targeted amendments to the Insurance Act and Companies Act could help attract new business.
ICAB has also expressed disappointment that the 2024 Budget did not go far enough to support pensioners, despite the increase in the personal allowance to $45 000.
“We do not feel that this is a sufficient reward to a taxpayer who paid taxes at a certain level during their working life and is seeking to be less of a burden on the state as they get older,” Padmore said.
Highlighting that the economy is still facing challenges, the ICAB CEO noted that Barbados is at a critical juncture where it must strike a balance between fiscal responsibility and policies that promote business growth.
The institute is calling on the government to use the upcoming Budget presentation as an opportunity to streamline outdated regulations, provide greater clarity on tax incentives, and create a more predictable business environment.
“Barbados stands at a pivotal moment to leverage its strengths in tourism, renewable resources, and human capital to unlock growth while safeguarding our future,” Padmore said.
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