I know that we will have some tough times ahead, and it is good that you want to distribute taxes and levies fairly.  I know each of us would have a different opinion as to what should or should not be done.

However, I was a bit disappointed with the 2.5% health levy.  If we need to generate funds for the QEH, the polyclinics and our subsidized medications, I can understand the levy.  I disagree with how the funds will be raised. How the 2.5% levy is being applied, is that it will mean that only the persons legally employed will carry the burden of this.  It is not being fairly distributed over the persons using the system.  

I believe that a 1% Health Levy applied to imports would be a fairer distribution of this tax.  It would then capture all the persons in Barbados, from the mechanics, the home salons, the food vans, the prostitutes, the drug lords, and others in the underground economy.  It also would not add an additional 1.5% to the wage bill of employers.  How many employers are making a lot of profit in these times?  We do not wish to have businesses closed, or more people going home than necessary.

I know you may not be in favour of the 1% Health Levy being put on at the port, as it is very similar to the NSRL which has just been removed, but it is a fairer distribution of this tax.

I would not impose this as an increase on the VAT, as there are enough problems with the Government collecting VAT from some businesses, and also refunding VAT.  Increasing the VAT will drive more persons to shop overseas.  It is a good idea to impose the VAT on overseas purchases, if you can do this, as this will help level the retail playing field locally, and bring in the funds needed.  If more persons shopped locally, then there would be growth in the retail sector, and persons would remain employed, and possibly more jobs maybe generated in time.

Submitted by K. Smith