Barbados tax increases

The Barbados government has increased taxes in a bid to raise more than US$100 million.



New Finance Minister Chris Sinckler told the nation in his first budget that he had no alternative as he tries to rein in a galloping public deficit and debt.



He also announced a hike in Value Added Tax and bus fares and a cut of some tax free allowances.



According to Sinckler, the alternatives would have been ten times more painful and preferable to hundreds of job losses and severe cuts to subsidies.



However, he sought to cushion the blows by announcing modest increases in old age pensions and welfare grants.



The announcements were made in the wake of pressure from credit ratings agencies to take decisive fiscal measures to avoid a downgrading.