Bridgetown.
The Barbados Chamber of Commerce and Industry is calling on the Government to adjust the income tax bands or return entertaiment and travel allowances to their tax free status.
Executive Directorof the BCCI Lisa Gale, says the adjustment would give Barbadians more disposable income to cope with rising inflation.
Minister of Finance Chris Sinckler, yesterday went to Parliament three days before the value added tax rate (VAT) at 17.5 percent expired legally to extend the current rate.
"I am not surprised that it was retained even though in 2010, the Minister of Finance wanting to impose it for just six months. In the current situation where has been little growth in the economy I am not surprised that he would have extended it,given the circumstances", Gale said.
"Given the uptake of the tax from the VAT that the Government had seen, I would suggest that they do some tinkering with the income tax bands so that the lower and middle income brackets are not at a disadvantage given the increased tax and the reduction fromtheir allowances" Gale added.
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