No Increases in VAT Expected in Near Future

Minister of Finance and newly re-elected Prime Minister Roosevelt Skerrit says Dominicans should look forward to a major reduction in the cost of living come January 2010.

Prime Minister Skerrit announced during the December 18th general elections campaigns that if re-elected the Dominica Labour Party Led government would reduce the cost of living over the first 100 days in office.

But at his official swearing in as Prime Minister Monday morning, Skerrit says a 20% decrease in port charges will be implemented as early as January.

“On the issue of the cost of living, we articulated certain immediate actions that we shall take within the first 100 days after taking up office to seek to reduce the cost of goods on the shelves of Dominica. One of them included reducing port charges by 20% and increasing the number of days that goods can stay on the port without incurring any port charges from five to seven days. I am sure the private sector is elated and the citizens and buying pubic are certainly happy,” he said.

Meantime Prime Minister Skerrit says though Value Added Tax is necessary, there will be no increase in VAT rates in the near future.

“For all the social programmes to be maintained, we have to continue to be vigilant with the management of the country’s fiscal policies.

He said government will not tamper with the issue of the VAT.

“If we tamper with it them we would destroy the fabric of the country’s revenue base. Anyone who would propose the removal or reduction of the VAT is asking for trouble for Dominica…I want to dispel the notion that government is going to increase the rate of VAT at this time,” he said