ROSEAU, Dominica – The Dominica government Friday presented an EC$1.7 billion budget to Parliament urging citizens to meet their tax commitments to the country.
Finance Minister Dr. Irving McIntyre presenting 2024-25 national budget (CMC Photo)Finance, Economic Development, Climate Resilience and Social Security Minister, Dr. Irving McIntyre told legislators that the recurrent expenditures would be EC1,502.4 million, while the recurrent revenue is in the amount of EC$1,202.5 million.
He said regarding the recurrent expenditures, the allocation for goods and services accounted for 35 percent or $234.9 million, of total recurrent expenditure and that the total budgeted for personal emoluments is EC$167.1 million, or 25 per cent.
“This amount takes into account increases in some of the allowances paid to public officers. The amount set aside for retirement benefits, transfers, and subsidies is EC$144.6 million. That amount includes public assistance, grants, and payments to local, regional, and international entities.”
McIntyre said interest payments are expected at EC$54.1 million, while debt amortization and contributions to the sinking fund are estimated at EC$73.2 million.
He said n respect of the capital estimates for the 2024-5 fiscal year 2024/2025, he is proposing a capital expenditure of EC$934.9 million.
The Finance Minister said that the expenditure budget is to be financed from a combination of government’s revenue, loans and grants together totalling EC$1,502.4 million.
“Of the EC$1,202.5 million recurrent revenue which is projected, we expect to raise tax revenues of at least EC$414.1 million, EC$760.0 million through the Citizenship by Investment Programme (CBI) and other recurrent revenues, such as fees and licences totaling EC$28.4.”
But McIntyre said that these projections and more, can only materialize if Dominicans “as good citizens live up to our obligations and pay our taxes.
“This year, government will strengthen the revenue collection systems to collect monies which are owed to the State. Too many businesses and people are owing income tax, value added tax, motor vehicle licences, company fees, hospital fees, and for land lots purchased from Government, among others.
“Taxes, licences and fees are our contribution to the effective running of the State, including maintenance of our roads; ensuring we have medicines and supplies at our health facilities as well as nurses and doctors to provide services; securing the State and ensuring that our children receive an education.
“These are just some of the reasons why we must pay taxes, on time. If we do not pay our taxes we are denying the State the revenue it needs to better provide for our citizens”
McIntyre said that there are times the nation is told of the government’s inability to pay a contractor or a service provider.
“ However, it is really our nonpayment of our taxes which is often the main cause of this occurrence. To this end Mr. Speaker, I take this opportunity to congratulate the many who continue to pay their taxes and licences, on time.
“As a country, we have made significant progress without imposing additional taxes on citizens. Thanks to the inflows from the CBI Programme which we have use to offset some of the capital costs that otherwise would have had to be borne by residents,” he added.
Under the CBI programme, foreign investors are granted citizenship of Dominica in return for making a significant contribution to the socio-economic development of the country.
McIntyre told Parliament that the government as it prepares for a further transformation of the ialand, it will this year, increase collaboration with the private sector.
“We will establish a committee comprising individuals from the public and private sectors to examine economic and social issues and make policy recommendations which will create a more conducive environment for further investments.
“The committee’s work will include input to address the issue of labour, including farm labour, as several jobs are available in Dominica but there is a scarcity of individuals to fill these jobs.”
He said furthermore, the committee will review the wages which are being paid in Dominica and make clear recommendations regarding the minimum wage rate.
“Government will also be undertaking a review of the corporate income tax and will seek feedback from this committee. We are of the view that some amendments can be made, in particular, to attract additional large investments, increase the number of jobs opportunities as well as allow businesses to self-insure and protect their investments.”
McIntyre said that another important issue which the Public-Private Sector Committee will look into is the price of goods in Dominica, noting that the Roosevelt Skerrit government has removed import duty, and in some instances value added tax (VAT), on a number of basic items used extensively by Dominicans.
He said goods such as flour, rice, milk, baby formula, sugar, adult and baby diapers, agricultural and fishing inputs, machinery and equipment, animal feed, among others, enter Dominica free of import duty and VAT.
He said that the government is deeply concerned that notwithstanding the reduction in charges, the shelf prices of many of these items remain very high.
“For example, government removed the 15 per cent VAT and duty on adult and baby disposable diapers, however, citizens have not benefitted from government’s efforts to make these products cheaper.
“It is now time to have a conversation about this critical matter so that we could devise a plan of action to achieve the desired result, which is, a reduction in the price to consumers. We must work to protect our vulnerable and their families, and provide the enabling conditions to reduce the cost of living.”
McIntyre also announced the establishment of Tenancy and Rent Commission, saying that “many of our citizens live as renters or tenants and it is crucial that we provide more robust protections to safeguard them against exploitation and guarantee access to safe and affordable housing.
“The government of Dominica is concerned about the exorbitant prices and poor quality of some rental properties available to tenants. At present, the Tenancies and Rent Control Act, is in place, and establishes a tribunal to address rental disputes.
“However, to improve rental conditions, protections and rights of both landlords and tenants, the Government of Dominica will establish a Tenancy and Rent Commission to address issues such as regulation of rent, protection against unjust eviction, and the enforcement of health and safety standards in rental properties.”
McIntyre said that the Commission’s initial action will be to pursue amendments to the Tenancies and Rent Control Act, to improve regulations and clearly outline the rights and responsibilities of both landlords and tenants.
Additionally, the Commission will provide oversight of rental agreements and conditions, field queries and refer to disputes to the Tenancy and Rent Control Tribunal, McIntyre told legislators.
Debate on the budget will begin on July 29.
