News

The 2020/2021 national budget has been approved and passed in Parliament.

On Tuesday, July 28 2020, Prime Minister and Minister for Finance, Honourable Roosevelt Skerrit, delivered the 2020/2021 budget amounting to nine hundred and forty two million, one hundred and seventy-nine thousand, nine hundred and forty dollars.

The budget which was delivered under the theme ‘The Road to Dynamic Dominica - Fostering Economic Resilience’ is one which can be described as encouragement for economic growth and development amidst the economic disadvantage due to the corona virus pandemic.

One of the major features of this year’s budget is the reduction of land transfer fees and a grant to first time home builders.

Prime Minister Skerrit says this moves shows Government’s commitment to housing in Dominica and this ensures that each young Dominican will own a piece of their country.

“Mr. Speaker Government realizes that several persons own land but are not in possession of a certificate of title as they have difficulty in paying the taxes associated with their transfers. There are also several vacant and quite often prime properties which are in a state of abandonment across Dominica. Many of those have been willed to family members who are unable to divide and register these properties in their names simply because they do not have the required financial resources. We are also aware that several Dominicans, particularly young people, who would like to own a piece of Dominica and any assistance received from Government would help to make that possible. For a period of one year, that is from September 1 2020 to August 31 2021 the fees related to transfer or purchase of land will be as follows: Stamp Duty 2 percent, judicial fee 1 percent, assurance fund 1 percent, Fee to Lawyers a maximum of 1 ½ percent,” PM Skerrit stated.

The total of five and the half percent on the value of the property will be paid by the buyer instead of the ten and a half percent which is currently payable.

Government will also be providing grants for first time home builders and duties on building materials will also be reduced.

“Notwithstanding Government’s expansive housing programme, we are cognizant of the fact that we must create the environment to encourage people to build their own homes. We have more than doubled the mortgage interest deductions allowable for income tax, have made funds available at the Government Housing Loans Board and at the AID Bank, for access by public officers and citizens in general. Government is going further this year, and is providing temporary reduction in the fees related to the transfer of land. It is our desire that everyone, particularly our young people, will take advantage of the opportunity during this very favorable period, to invest in the purchase of properties and conduction of their homes. To assist in this regard, Government has set aside an amount of 1.5 million dollars to support persons under the age of forty years, whose annual income is less than 100,000 dollars, who have never owned a home before and are interested in acquiring a home of their own. This support will be provided in the form of grant vouchers to a maximum of 10,000 dollars per house for the purchase of building materials or to be put towards the transfer fees for the purchase of a new home,” the Prime Minister explained.

Prime Minister Skerrit outlined the requirements to qualify for the grant:

“To qualify first time home builders, must present copies of building plans approved by the Physical Planning Division and must have commenced construction with the secured financing required to complete construction of the building where they intend to reside. In the case of first time buyers of a home, notice of intention to sell must be presented along with evidence that financing has been secured. These grants will be available from October 1 2020 and be administered by the Ministry of Youth Development and Empowerment and is expected to benefit 150 of our young people. While we concentrate on providing for the vulnerable, middle age and elderly we shall continue to assist in the development of our young people, to ensure they can be self-sufficient and can contribute to the building of Dominica for generations to come,” PM Skerrit noted.

For this financial year the digital transformation of Dominica’s economy will be well advanced as Government has secured a seventy-five million dollar loan with the World Bank to help finance the transformation of Dominica’s digital economy.

Prime Minister Skerrit says in order to grow the economy and to ensure more sustainable and higher paying jobs, particularly for the young people, the Government of Dominica decided to pursue the digital economy.

“This policy was clearly articulated in the Labour Party manifesto, and our seriousness was manifested in the creation of a Ministerial portfolio, which specifically focused on the Digital Economy. We immediately embarked on efforts to secure the necessary financing to help us achieve our objectives. In less than six months of this new Government taking office, we have secured 75 million dollars to help finance this transformation. This is a tremendous show of concern for and confidence in our young people. This is 75 million dollars being invested in the youth, to assure them, especially those now at university and other schools, of increasing opportunities for them in this emerging economy,” he noted.

Prime Minister Skerrit says the transformation of the digital economy will upgrade Government’s telecommunications infrastructure and network which started last year.

“This transformation while primarily advantageous to young people will also benefit the whole of society; by improving efficiency and the way we do business, by bringing to us an increased range of online services including allowing us to pay bills online and accessing Government services, by employing digital technology to make our businesses more attractive and accessible to the public, and by making online education more readily available to our students and improving the delivery of health care services,” the Prime Minister went on to note.

Meantime Prime Minister Skerrit promised entrepreneurs that Government will assist their business endeavours in the 2020/2021 budget. A special facility was put in place to support micro, small and medium enterprises in Dominica. The finance minister says these small business have played a critical role in Dominica’s economy over the years.

“Mindful of the contribution of these businesses to the economic development of our country Government, over the past three months has implemented a number of measures amounting to 23.2 million dollars to cushion the negative impact of covid-19 on the MSMEs. These measures include extension of the tax payment and filing due dates, access to a special, highly concessional loan facility to assist these business in meeting their operational costs and livelihood grants to the self-employed and employees who were grossly affected,” the Prime Minister stated.

To date seven hundred and ninety nine individuals have received livelihood grants, another two hundred and nine two have just been approved for payment while three hundred and ninety loans have been approved.

“Government is cognisant of the need to continue to assist these businesses in accessing the necessary financing for their development, growth and viability. Government will provide to the AID Bank an amount of 30 million dollars, over a three-year period, for onlending to micro, small and medium sized businesses. These funds will be loaned at an interest rate of one percent. This is in addition to the other facilities currently available through the AID Bank.  An amount of 4 million dollars million has been set aside for this Fund during this Fiscal Year, in the first instance. To benefit persons must be in good standing with the Dominica Social Security and the Inland Revenue Division. I intend on meeting a representative group of entrepreneurs and business owners, as early as July 29, 2020, to hear from them, on the conditions and parameters of this new exciting initiative” PM Skerrit further added.

The Prime Minister says Government is aware that small business owners has concerns about having similar income tax filing requirements as a medium-sized business. The Minister of Finance says Government is implementing a simplified tax system for small businesses. This system is expected to be fully implemented by January 2022.