Government says the IMF has been engaged to begin a review of the income tax regime with the hope of removing the tax or at least make it a flat standard rate.
The Hon Prime Minister, Roosevelt Skerrit, Finance Minister, says he is not personally in favour of income tax.
“I am a strong advocate against income tax,” he shared. “I understand that the country needs it and it would be reckless on the part of the Minister of Finance and Government to remove it altogether without proper sound advice.”
“I believe fundamentally that if you provide labour to somebody that you should keep all the labour’s worth and let you do what you want with your money,” he said in Parliament this week.
Under his leadership the tax threshold was raised twice to allow employees to take home more of their earnings. Currently, employees who make up to $30,000 annually pay no income tax.
Hon Skerrit says he hopes to have an even bigger impact in the lives of working Dominicans.
He says the IMF review will examine “if we are to eliminate income tax as we know it altogether, how do we go about replacing that lost revenue and if we cannot remove it, can we not look at a flat rate of income tax in Dominica so that people can go home with more of their revenue?”