Above: Dominica (CJ Photo)
By the Caribbean Journal staff
Dominica’s government is planning a reduction in the country’s corporate tax, it announced this week.
Dominica will be lowering the corporate tax rate to 25 percent from 30 percent, according to a government release.
“Being fully cognizant of the goal of facilitating economic growth, Government sought ways to best to maintain strong macr-economic policies and prudence while meeting the needs of its citizens,” the government said in a statement.
The reduction will take place over two years.
In the first year, the adjustment will be 2 percentage points, with a further 3 percentage-point reduction in the second year.
Dominica said that would mean that it would forego about $3.6 million EC in tax revenue.
“What is important to us is that we listen to the population whenever and wherever they speak and respond in the best way possible,” Prime Minister Roosevelt Skerrit said.
The measure will take effect in the 2015 income year.