Key Points in Budget Address 2008 which may affect persons wishing to reside in Dominica
Implementation of the second phase of the income tax reform

Effective 1st January 2009 the following further actions will be implemented by way of additional tax relief :

 The tax free allowance threshold will be increased from $18,000.00 to $20,000.00;

 The rate on the first $20,000 of taxable income will be reduced from 18 percent to 16 percent;

 The rate on the next $30,000 of taxable income will be reduced from 28 percent to 26 percent; and

 The rate on taxable income above $30,000 will be reduced from 38% to 36 percent.

 All pension incomes will be exempt from income tax.

 Exemption from all hospital fees

 All persons 65 years and older, as well as infants and young persons up to the age of 18 years who are still at a formal education institution, will be exempted from the payment of hospital fees. Further, all physically and mentally challenged people will be exempted from the payment of hospital fees.
 Reduction in Tariffs
 Government has reduced tariffs on a number of basic food items.

 In a further effort to reduce the cost of imported goods, the Government has agreed to increase the number of days that imported cargo can remain on the port before “storage charges” are applied. The number of days will be increased from 3 days to 5 days. It will be necessary to make amendments to the Dominica Air and Sea Port Authority Act to accommodate this measure.

 Support for Renewable Energy

 The Government has pledged to continue to work with interested investors to adopt energy technologies that are not highly dependent on fossil fuel.

 Consistent with Government’s commitment to encouraging the use of alternative forms of energy, with immediate effect all duties on equipment to be used in the self-generation of energy from renewable sources will be removed.
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 Removal of the excise tax on Liquid Petroleum Gas (LPG) imported into this country. It also means that no taxes will be included in the price build up for LPG. This measure is being taken to bring relief to residents and to ensure that LPG which is a basic commodity remains accessible to all. This measure will apply from the first shipment received after 10th July 2008.

 Small Businesses

 Establishment of a small business Unit to assist small and medium size enterprises. The VAT Threshold has now been raised from EC65,000 to EC$120,000

The full budget address is available for sale at the Government Treasury at the price of EC$30.00