Dominica Parliament Building
Dominica: With the amendments to the VAT Act and the Excise Tax Act, the Dominica government would exempt import duties and excise taxes on motor vehicles imported by individuals or companies whose main activity is the transport of visitors. Dominica's cabinet meeting was approved on Tuesday, December 8, 2020.
In a statement following the cabinet meeting, Minister for the Environment, Rural Modernization and Kalinago Upliftment, Cozier Frederick, said the government would be putting a green flag on vehicles at the upcoming session of Parliament on December 16, 2020 will.
In another announcement on packaging and labeling materials, the minister said the cabinet had agreed to remove VAT and import duties. The above exceptions also apply to “equipment and machinery used to manufacture goods in order to improve the competitiveness of locally produced goods”.
He added, "Parliament will meet on December 16, 2020 and the government will seek parliamentary approval on amendments to the Excise Duty Act and the Value Added Tax Act to facilitate the permanent implementation of these measures."
"The VAT amendment also includes VAT exemption for the importation of pleasure boats and excursion boats of at least 45 cubic meters and their engines," he added.
The minister said that all of these measures are expected to directly benefit two productive sectors of Dominica, including tourism and manufacturing.
Frederick noted that these measures were decided after consultation with stakeholders in each sector. "As a government, we are pleased that we can bring some relief to support micro and small businesses in particular."
The people of Dominica have been waiting for tax exclusions and the measures put in place by the government are undoubtedly being used fairly and many people are expected to take the opportunity to expand their businesses and start new ones.
The minister also referred to Prime Minister Roosevelt Skerrit's commitment to Dynamic Dominica's journey and recalled the announcement made during the Prime Minister's budget address for 2020/2021.