The Dominica Association of Industry and Commerce (DAIC) is pleased that two of the recommendations proposed to the Government of the Commonwealth of Dominica, in preparation for the new fiscal year, have been accepted. These recommendations were declared by the Honourable Roosevelt Skerrit in his presentation of the 2021-2022 National Budget.
DAIC recommended to the Government to provide a personal income tax allowance for property insurance premiums paid by citizens. In the push to become the first climate resilient nation, DAIC believes that incentives should be put in place to ensure that citizens transfer their risk through insurance, one incentive being this recommendation. The Chamber is of the view that several benefits will be derived from this recommendation.
Firstly, the implementation of an Income Tax Allowance on Property Insurance premium payments expands the accessibility of adequate insurance coverage to individuals; hence, reducing dependency on the state in the event of disasters.
Secondly, there will be an increase in their household’s disposable income as individual tax liabilities will be reduced. The latter should translate into increased household consumption and have positive knock-on effects for the local economy.From statistical data collected by the DAIC, an estimated insured of 3,403 taxpayers may be able to benefit from this incentive.
Thirdly, we believe that the uptake of property insurance by the populace will enable the state to reduce its contingent
liabilities and focus more of its funds on the continuous development of Dominica.
DAIC also recommended the extension of the reduction of property and land transfer fees for an additional year. The measure, first introduced in fiscal year 2020, has yielded positive results, with transfer requests increasing by 71%
compared to fiscal year 2019. Easing the acquisition of real property is expected to seed an increase in personal and commercial construction, resulting in several of attendant benefits.
In coming up with these recommendations, the DAIC sought feedback, backed by data, from its membership to inform its submission to the Government. Five of these recommendations were further developed and presented to the Government for consideration for inclusion in the National Budget. The recommendations were designed to improve the macroeconomic environment and generate sustainable opportunities for the Private Sector, giving due consideration to the fiscal headwinds which have been magnified by the dual impact of Hurricane Maria and the coronavirus.
DAIC acknowledges the other measures being put in place to support the Private Sector such as the one-stop-shop for businesses through Small Business Unit and the concessionary financing through the AID Bank. We will work with the
Government to ensure effective implementation and timely feedback to equip our members and other businesses to be able to access the same.
As a valuable partner in nation building, DAIC looks forward to continuing its dialogue and partnership with the Government to ensure that the proposed budget is implemented to advance the development of the Private Sector and citizens of
Dominica.
