Prime Minister Fruendel Stuart at the Inaugural Barbados Diaspora Conference currently being held at the Lloyd Erskine Sandiford Centre, to run from August 5th – 7th, 2010, announced that duties will be removed on the cars of returning nationals. There was the further announcement that Barbadians living in the Diaspora can open Foreign Currency Account in Barbados. The changes are expected to take effect from September 1, 2010. The initiative is the brainchild of Prime Minister David Thompson.
It is a strategy designed to encourage Barbadians living in the Diaspora to invest in Barbados, especially during these difficult economic times.
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Is this necessary when the Auditor General found that 70 cars had been released from the port without duty being paid?
Only joking.
No doubt money was paid, just not in duty.
What determines a “Returning National”?
We must be careful of incentive policies that are crafted with good intent but leads to negative unintended consequences . Any incentivise policy must be design with the axiomatic assumtion that human beings by default are morally and materially corrupt. I have heard that in Barbados around 50% of the white-collar crime are done through customs by the business elites through under-invoicing, special waivers and out right duty exemptions. Revenues generated by custom makes up large percentage of government income but at the same time it is a hot -bed for corruption and provides the largest source of leakage to the government coffers.
There are too many free-riders, rent seekers and special interest in this country who are not paying their pay share of the tax burden- always seeking some government waivers etc- while PAYE earners-all working class members- are alowed to shoulder most of the tax burden.The morally repugnant elites in Barbados are th biggest free -riders in this country especially those in the hotel industry.
We therefore cannot be providing all type of incentive schemes to special group when for the most part the unitended negative consequences outweighs the benefits. People is going to find way and loop holes to import cars for non-returning residents. The government needs every bit of revenue it can get it hands on now and providing this scheme it counter-intuitive.
@zion1971
You make a good point. The government finds itself in a dilemma. The previous government relied on foreign direct investment in the area of tourism development i.e.selling Bajan land. How does the government depart from a policy of aggressive real estate development and continue to attract the foreign currency inflows at the same level to pay for government?
Prime Minister Owen Arthur is on record as stating the cost of government is high, leader of the opposition in her last press conference confirmed based on the policy of the previous government it would have taken about 15 years to transform the productive sector.
The government finds itself in a bind to replace diminished FDI for selling land with another/new foreign exchange revenue stream.
There is a whole load of documentation defining what a returning national is at the moment. You can see this at:
http://www.foreign.gov.bb/UserFiles/File/Returning%20Nationals%20Information%20Booklet.pdf
It’s pretty galling to be a recent casualty of the current rules as we failed to satisfy the 50+ age rule. Maybe they should make the change retrospective.
@zion1971
Maybe the point to be is if our revenue collection in Customs needs to be improved it should not be the barrier for stopping good policy initiatives.
@ David. A pal of mine who works in the Barbados central bank tells me that duties and waviers constitute around 10% of the GDP . That is revenue the government forgo for the primary goal of economic production. The list of duty exempt items coming into this country are so numerous that one has to wonder wether the government is colleting even 30% of the potential revenue at custom. The Ministry of finance needs to rationalize the list as a lot of these waivers are tied to political favours.
Waivers should be given to tools of trade and capital equipment for production . Farm tractors and farm vehicles should be priority. Personal vehicles are consumption goods that only increase our traffic congestion and also our oil bill.Our road infrastructure is already over-burden by the present vehicular population on the Island. Government policy should be encouraged in the area of biking , It could do miracle for those in the overweight segment of the population.
@zion1971
That is significant, the government is taking some risk it looks like.
Could it be the government is attempting to use the waiver as an incentive/teaser to trap the enormous foreign currency deposits/pensions which this group owns?
We should also be aware that , for many years , the so -called Returning National, a label I detest, have been putting more into our economy more so than the disposed King Sugar, surely they should be accorded some perks, the same as the hotel industry. Aren’t these the same people who send million of dollars/pounds back here in the form of remittances?
Many companies now in Barbados are allowed duty free cars, check out the various Gyms and Saloons on weekday mornings and see who are driving these duty free company cars,most of which are SUV’s.
@ David , I agree that Bajans who are returning home carry with them a vast potential of wealth especially in pension benefits. However, providing a waiver on a car will not increase the number of returnees.If that is the government intent then it is an ill-advised one. People decision to retun home is hinged on a number of variables and I personally dont think the present scheme is a top of their list.If we really want to get retired bajans overseas to retire in droves what we need to do is to improve our medical facilities and program on par with developed countries.
We are already bursting at the seam with too much vehicles on the road.All the unecessary driving is too much waste and consumption given that you couldnot even run a straight marathon in Barbados.With a decent public transportation system we could correct this problem.
Barbadians living overseas do NOT contribute more to the development of Barbados than those who live in Barbados. Not even close. Not that I am not disputing that they make a contribution but I do not understand the rationale that foreign resident Barbadians should be entitled to a duty free car while those living in Barbados must pay all requisite duties. There are Barbadians living abroad who were actually supported by their families living here (I have first experience of this) and they do not contribute anything back to this country.
Returning nationals are owed no greater nor lesser treatment than those living here.
@Anonymous.
Did you read Bosun’s comment. ” the so -called Returning National, a label I detest, have been putting more into our economy more so than the disposed King Sugar, ”
These “concessions” by Government is an effort to get us overseas Bajans to invest in Barbados.
We overseas Bajans,especially those of us living in “cold” provinces or states have the option of becoming “snowbirds” or moving to Florida or other tropical climates.
A lot of us are also choosing to just stay in the “cold” and enjoy 3 of the four seasons.
It is also intended to ecourage some of us to return before we retire and set up Businesses that will help the economy.
It is also intended to discourage some of us from selling our properties in Barbados and taking our cash out of Barbados.
A lot a we love Babadus bad bad, buh eff wanna doan want we we cuh stan to rassbowl weh we is an only come down dey fuh a little vacation eff we doan feel like gine to florida or sin lucia.
So Florida or “sin lucia” are offering duty free concessions to Bajans who live outside of Barbados? Steups! Wunnuh wid dat attitude could really guh long in trute.
Barbados at this time needs all the foreign currency in can get. If it means throwing some concessions at Bajans why not, is better than throwing at non Bajans which we do without batting an eyelid. There was a time when Bajans could pick and choose, now we are up shit creek.
@Anonymous
you appear to have diminished cognitive function.
@David, yes Barbados needs us overseas Bajans to continue sending or bringing money home.
Most bajans do not forget their family and friends in Barbados.
A lot of us ( like me ) want an “early” working retirement back in Barbados. I am self employed and would be creating jobs if or when I return and it is encouraging that some Bajans want to facilitate our return.
The one thing I would like is that a returning National be allowed to buy a car duty free in Barbados on his return.
This would reduce the number of Left Hand Drive cars brought to Barbados.
Why should you be allowed to buy a car duty free? Because you did B’dos a favour by coming back? So my staying here and establishing a business and buying a home here and supporting other Bajan businesses my whole life, counts for nothing because I didn’t abandon this island for the US, Canada or the UK ?
I don”t see a problem with the duty free for nationalist .THis in itself is a win win for all parties.The money would eventually be filtered into the economy and the DLP would have new voters!
How does giving returning nationals duty free cars increase invesmtent in the country? Those people will come back. The poor ones might not bring back the cars, but will probably buy one when they get here and pay monthly payments like everybody else. I like the diaspora programme, it is something that is a good move for the country. We must engage them meaningfully, but giving up revenue at a time like this, to only tax those of us who live here more is an exercise in futility. The only benefit of this aspect of the programme is to catch votes.
Anyway you look at it we can”t eat the money, Either we save it in which the banking industry would benefit or we spend it which in turn fuel much needed money in the economy. The government knows that many of the returning nationalist has retirement income . These people might not spend a lot but the revenue generated in the banking industry by them would eventually find its way into the local economy and may even be useful to locals who want to start a business. I think this is a good move by the government in the long run it would prove to be so.Banks having more money means more money to Lend .
@Anonymous.
A lot of us didn’t abandon Barbados. We couldn’t even if we wanted to because some of us had to support parents and pay their medical bills for years while bussin we ash up hey in de freezer.
We been repairin house,paying light an water bills,property taxes all to support “our families” in Barbados. Sometimes we can’t come home or take vacation because “yuh mudda got a bills hey from de docta and she truss some melsun from de druggist.
Then when duh dead we gotta pay fuh de fewnal.
Just so yuh kno Anonymous, a lot of Bajans doing you a favour an retiring up in de cold. See dum up hey walkin bout in de mall fuh exercise during winter an duh going on cruise an ting to other hot places dat want duh money.
However some uh we navel string mek wid elastic an it pullin we back to Babadus an you Anonymous can’t stop we from gettin drag back an you can get vex an scratch muh Hbmwm9 or pelt a rock at it but yuh can’t mek muh pay duty pun it cause de Guvment say uh can bring it in Duty Free.
Uh wunda whey muh boy GP gine retiya?
@Hants
Thought the Doc commented before he had to run from Bim?
There is another advantage.
The children of returning nationals will visit and spend money even though they do not want to live in Barbados.
The generation of “Bajan”children born overseas are establishing themselves in the countries where they were born and the number of returning nationals will diminish in the future.
Anonymous will be pleased.
@David,
That was when de Doc was young but now he is getting older and wiser, he will probably just want to sit under an almond tree and read his Bible.lol
Alot of barbadians have the same attitude that anonymous have. That is why many stay away rather than be treated as outsiders. Yes the nationalist do contribute a lot of revenue to Barbados but many bajans only see them as coming to take over the country and telling them what to do. Bajans need to stop being so downright negative against their own when it comes to helping their economy
How de hell wunnuh come to conclusion dat I don’t want Bajans living away to come back home (o.k. not Hants cause he support de DLP) ? I want dem treated the same as I am treated not like the prodigal son coming back so bring out de fatted calf!
I am against giving duty free concessions for a car to a subset of Barbadian citizenry because they lived away for 10 years or more and now coming back home! If the Government wants to give duty free concessions to every Bajan, say over 60, who is retired and limit it to one car under a certain size (1200 cc) and in a 10 year period I might see this as a fairer approach.The system was abused before and I don’t see why it wouldn’t be abused again.
If there is one thing I wish someone could help the overseas Bajans with is de crooked lawyers and builders who take their money they send back to buy land and build homes and then rip them off. I think dat is more of a concern than a duty free car.
i agree with a returning national being allowed to inport the car he has been using for say over 1 year without duty being imposed. However to import one where no taxes have been paid either here or away is not on.
The fundamental issue is and must continue to be that TAXATION is wrong and evil in ALL circumstances.
Too, what is certainly worse than any one NOT coming to this type of realization, though, is their NOT coming to the understanding that one of the bases for the continuation of this evil unjust TAXATION system in Barbados ( and whereever such similar things apply else places), does lie in the unworthy inspiring of and the despicable perpetration of this type of evil wickedness whereby the government brazenly decides to stop stealing x amount (in duties) from the incomes ( NOT FROM THE VEHICLES, CARS, etc.) of the relevant qualifying so-called returning nationals, in the face of its NOT doing the same for local car owners.
Also, what can be found to be very detrimental to many people having an understanding and acceptance of these realities is the engendering and fomenting of many FALSE FALLACIOUS DIVISIVE OBFUSCATING ISSUES by some people among many of these people, like this one that is raised by David/BU – “the government finds itself in a bind to replace diminished FDI for selling land with another/new foreign exchange revenue stream.”
Those types of fallacies notwithstanding, the fact of the matter is that this alarming joke strategy of the removal of Import Duties still does point irretractably right back to evidence where this type of governmental misconduct presents one means through which this evil wicked TAXATION system in Barbados survives – through BLP/DLP Governments ( and other foreign governments) dividing and conquering countless different TAXATION subjects/victims at different TAXATION levels at different times inside and outside of the country.
Moreso, the diabolics of this thieving TAXATION system involves making sure that THE VAST MAJORITY OF ALL TAX subjects/victims (potential ones too) in Barbados believe that – in the present/future – ALL TAXATION subjects/victims are will be likely at some times to benefit from any number of TAX stealing breaks – whereas those who are every day forced by the threat or use of criminal sanction by these theiving immoral DLP/BLP governments to hand over the relevant portions of their incomes to these governments themselves and their agents on other occasions, and who actually at whatever times end up doing so/ are likely to do so – are still yet the SAME MAJORITY OF ALL THOSE TAX subject/victims earlier mentioned that are still believing that ALL TAXATION subjects/victims are will likely benefit from any other number of TAX stealing breaks on other occasions at so many different levels and in so many spheres of the TAX corpus in this country, and who moreover yet are still ALL THOSE SAME TAXATION subjects/victims who are every day forced by the threat or use of criminal sanction by these theiving immoral DLP/BLP governments to hand over the relevant portions of their incomes to these wretched governments themselves and their agents on other occasions, and who at whatever times end up actually doing so/ or being likely to do so.
Meanwhile, this type of TAX subject/victim conduct continues over and over again, in cycles, and in countless commercial spheres, even as it helps this wicked diabolical IMPERSONAL TAXATION system to continue destructively along the way.
But, look at the fact that the relevant qualifying returning nationals, or diasporic nationals, whose incomes will be made free of import duties under this Diasporic Networking system, will nevertheless also have to face the EVILS of this DEMON VAT SYSTEM at other points in time, or might be the EVILS of NIS, CORPORATION TAXES, etc.. but which quite dastardly in themselves are merely different words that are used to signify the same EVIL UNGODLY BRUTISH TAXATION behaviour.
Indeed, this divide and conquer virulence is pervasive within the TAXATION system in Barbados.
So, THE ONLY WAY to stop this divide and conquer TAXATION virulence, will be to RIGHTFULLY ABOLISH TAXATION in this country and other countries!!!
Do vote PDC next Elections.
PDC
Before we start talking about denying our own some concessions,perhaps we should be informed who in Barbados,at present ,not including Government depeartments,are allowed to import vehicles duty- .,We may be surprised.
@Donald Duck Esq, “inport the car he has been using for say over 1 year “.
So you are suggesting we bring used cars to Barbados. I guess you want to create work for the local mechanics.
@Anonymous “o.k. not Hants cause he support de DLP”.
I gine support Dem even if I living in Timbuktoo or Guyana.
Hants, Timbuktoo sounds good … tek a joke nuh!
URGENT
It would seem that the Sharon Primary School is under repair. In this regard – the St. Thomas Branch Meeting will in fact be held at the Lester Vaughn Secondary School this evening – just up the road from Sharon Primary.
Please note that Opposition Leader Mia Mottley – will therefore speak at 6:00 p.m., this evening at Lester Vaughn Secondary, Jackson, St. Thomas.
Please spread the word.
Here are some blogs from CCNmoney.com re the article entitled: RAISE TAXES NOW – THE ELDERS OF THE ECONOMY SAY SO, by Lex Haris, Managing Editor, August 9, 2010: 5:43 PM ET.
Whereas, these blogs are sure to indicate how forward many Americans ( and still too many are uninformed ) are on this subject of evil wicked TAXATION, they are also bound to show up how uninformed many Barbadians are on this issue.
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“If a one man takes your money by force or threat it is called robbery and is most surely a crime. If a thousand do it they call it taxes, but it is no less a crime.” – Buster Frog, 2:02 am.
“Raise taxes, more deficit spending. It’s always the same; more government, more Keynesian bullsh*t. Cut, slash, and burn, castrate the government beast. Government and taxes are the tools the ruling elites use to enslave the masses since the first irrigation coordinators became kings.” – Facebook User, August 9.
“The government needs to be put on an economic diet. The country ran without huge deficits for the first 140 years, all without the income tax. The more they get, the more they spend, and then they say “we need more money”.They spend like a rich wino in a liquor store. Taxes have outpaced inflation, and earnings. Working 4.5 months of the year to pay taxes is B.S. The government needs austerity, not the people.”
- Facebook User, August 9.
“As long as the FED runs the economy the American people are nothing but slaves, Abolish the FED.” – Facebook User, August 9.
“Read what’s on the dollar. It’s in simple English: “This note is legal tender for all debts, public and private”. “Note” in this case means “a debt and promising payment”. We are simply trading IOUs issued by the government. That’s right IOUs. And they are only good for “ … debts, public and private” meaning it has no real value. The government can call these notes, as it regularly does when it destroys them when they get old, reissue them, renegotiate them or assess an entirely different perceived value to them with no input or agreement from the holder. We are all forced participants in a giant Ponzi Scheme (A investing scam that promises high rates of return at little risk to investors. The scheme generates return by acquiring new investors.) That is what the creditors in association with the FED are doing to us (the debtors). Try creating your own Scheme or even a barter system. The government won’t let you because the Creditors would be cut out of the loop.” – Mandani Masih, August 9.
“Stop listening and publishing articles about the opinions of these old FARTS (Fat And Rich Total Sociopaths). These are the guys that got us into this mess to begin with. Every administration from democratic to republican has engaged in criminal activity. They have robbed us the tax payer. If anyone of us had done what they have we would be behind bars. Just ask Bernie. He decided his ponzi scheme could compete with the governments … and see where he ended up!” – Mandani Masih, August 9.
“I have a better idea, repeal the 16th Amendment; now that would be real tax reform.” – Brian Landsburger, August 9.
“Income taxes are a fine for working. The more you work the more your fined.” – Gary Logan, August 9.
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To ensure freedom and liberation for ALL from this evil scourge of TAXATION, Vote for a PDC Government Next Elections.
PDC
Barbados is struggling to raise revenue, but I don’t see this change bringing a flood of “Returning Nationals”
I believe that the Gov’t will allow some Casino Gambling in the near future, it will be promoted as an avenue to increase tourism and to generate taxes. At present the rules are so restrictive that gambling on cruise ships docked in the Harbour is prohibited.
Some sections in society may not approve of legalized gambling but they will hold their noses and support it if it is a revenue earner.
Sarge , people ,especially , those in the UK will not decide to come back home , just because of some concessions. They are coming back home because, they have served their time, and do not want, as Mr Barrow would have put it , found loitering on the doorsteps of London,Ipswich or Birmingham. It was always the aim of Bajans who went to England in the 50′s/60′s and 70′s to return home when they reach retirement age.And thousands have already returned to Bim, long before there were any concessions and long before it became fashionable to label our very own kith and kin “Returning Nationals”. These concessions will just go some way in easing their burden. Its not an easy exercise , relocating back to the Caribbean. If you have not left England mad,which we are wildly deemed as, just a few weeks back here with the bureaucracy and run around , and you on the road to Black Rock.
@Sargeant,
http://www.thestar.com/news/ontario/article/844961–ontario-set-to-bet-on-legalized-online-gambling
uh wunda wuh de Bajan economists got to say bout de world markets plunging downward today.
Dear PDC:
I promise to vote for you next election if you will promise to keep your posts to 300 words or less in an y2 4 hour period.
@Bosun
I believe emigration to Britain peaked in the 60’s and many of those folks have made the trek back to Barbados. I think the flood of returnees is largely over although a few might still trickle in over the next few years. The vast majority of those who emigrated to the USA and Canada return for Crop Over or family visits but I don’t see them returning
en masse to Barbados.
The labeling of “Returning Nationals” from Britain as “Mad” as is the norm by some in Barbados is most distasteful and should not be tolerated. Hopefully better sense will prevail and the practice will be discontinued
First let me say everyone will speak according to how the situation affects them. I am a highly qualied health professional who welcome the recent import change for vehicles as I will be returning to bim next year to work like my fellow bajans. When I left bim it was to study, as the beaurocracy meant that u had to kiss ass and what else necessary to be sent by managers to study and i was not going to put myself through that. I have multiple skills and knowledge to bring back to support my fellow bajans. I will also be building a home which will generate money and hopefully later starting a business which will generate a few jobs. There has not been one week when I would not keep up to date with bajan news and what was changing in my county. I have never considered the uk as my home! If we look at road congestion there may be other ways of reducing cars. What about when you have 4 people living in a house and all have a car each and going to town for work. Well done Mr Stuart. It is time that the car dealer giants in bim got some of their wings clipped.
Quite frankly, the protocol, red tape, high stress level that I endured was really not worth it. I ended up spending approx. Bds $9,000 in Barbados Port Authority charges, car insurance, and road tax . According to my certificate of title the road tax was $900 and when I got to the licencing authority, they told me with a full tank it would increase the weight of the car and therefore it ended up being $1,600. Let us not forget the 6 week wait to get my car ‘released’ despite the Ministry of Finance interview being waived. A whole set of false information. How I wish they would just let us buy a car duty-free from a dealer! Duty-free is duty-free, no? Oh wait! the ‘booklet’ is still dated 2007 and an official told me it’s ‘current’. Please!
Let’s look at what this Returning Nationals/Barbados Network program is and is not.
It is poorly run!
It is designed to extract as much money as possible from Returning Bajans by making the program as complicated, inefficient and cumberson as possible.
It is run by John Blackman who is unorganized, not a people person, does not return phone calls, never available, paints a glorious picture when you contact him while outside of Barbados and then he gives you hell when your container is in Barbados at the Port and you’re trying to get it out.
You’re gouged by Agents, Brokers, the Government, the Port and just about everyone involved in the process.
The Government is looking to our retirement money on a monthly basis fueling their foreign exchange issues or should I say crises.
We buy houses and everything involved in living here. Yes we help to employ Bajans, establish business and you could go on and on……..
Bajans who have never travel do not want us here, evident by many of the response and narror mindedness seen on this site (i’m not blaming the site) and elsewhere.
Returning nationals are giving up quite a bit by being here.
Dutyfree on household goods and a vehicle is minor conpared to what we contribute initially and over the years.
And by the way, the government touted back in August that the program was being improved to benefit Returning Nationals.
The program has not been improved…..it has been made more difficult by the 3 to 5 year change.
The only thing that has been changed is the NAME… Barbados Network, which nobody uses because of it’s non-discriptiveness.
In addition, opening the program to under 50 year olds sounds good but does nothing because you would have to be doing terribly Overseas to want to return before retirement age if at all.
Those who have a parent in Barbados might want to return in order to help care for them.
The hassles, trouble, Mr. John Blackman, delays, penny pinchingness and the other negatives of the program makes it very undesirable to want to return as a National Returnee unless you have a parent you really care about, that you want to help care for.
Would I do this again….HELL NO!
The small minds running the program and the greedy and incompetent government would convince me not to.
Barbados Network – run by the incompetant John Blackman,, who prides himself for being in the job for 20years (and he still hasnt managed to get it right). Strutting around as if he is important after years of bullying elderly retirees – the Network is now aimed at younger people. Entrepreneurs who are do well elsewhere – The only reason i want to back in Barbados is to ensure that my parents are well taken care of in their latter years – the good weather etc can be had elsewhere (but i do love my island) – it greaves me to hear people talk about “abandoning” Barbados – I was taken on board a BOAC plane at the age of 9 kicking and screeming to join my parents!!! i dont remember thinking about abandoning my home and i arrived in a cold “grey” place and hated it for many months! however I am back here after 47 years having made a fortune and I intend to give it to some charitable cause – but meeting the likes of John Blackman make me feel i should consider Barbados as a “temporary stop” .
I too am returning before my retirement age, but only to take care of my gran-daughter, and it is unfair that it would not be possible to bring in your car duty free, after living so many years in the cold, what is going on in Barbados, I tried calling the Blackman person but never got an answer, or even an email, how can you treat your fellow bajan like this mr. minister, that is why many, many, more Bajans are not coming back to the Rock.