BRIDGETOWN-The Barbados International Business Association (BIBA) endorses the statement by Minister of Finance Christopher Sinckler that the international business sector is a vital source of foreign exchange in Barbados. New BIBA president Melanie Jones described the 2012 national budgetary submission's treatment of the international business sector as "a measured recognition of the inescapable fact that Barbados' heavy dependence on foreign exchange to pay its high fuel and consumables bills, demands that a serious and tangible effort be made to support and capitalise on the sector's potential to be the leading generator of foreign exchange for Barbados."
Jones confirmed that BIBA welcomed the lowering of the minimum tax rate for international business entities. She said this was a meaningful response to Barbados' recent loss of its competitive advantage in the Canadian market, due to the extension of the exempt surplus treatment to subsidiaries established in TIEA jurisdictions.
It would also enable Barbados to stimulate new business based on the highly marketable lower tax regime, in other important jurisdictions such as the Latin American countries and the United Kingdom. The partner at Lex Caribbean acknowledged that Sinckler's projection of a tax revenue loss in the first year of implementation was realistic.
She said BIBA was confident the enhanced tax regime would lead to an increase in the volume of business brought to Barbados, which would amply compensate for the initial loss. Similarly, Jones said BIBA welcomed the provision for a special entry permit (SEP) system pursuant to which high net worth individuals and their families could secure long-term status in Barbados.
Jones observed however that the potential inherent in these new measures to attract foreign investment would be squandered unless they were intensively promoted as part of a sustained effort to showcase Barbados as an hub for international business encompassing both international financial services and private wealth management.
Caribbean360