ROSEAU, Dominica (CMC) — Prime Minister Roosevelt Skerrit has hinted at the possibility of eliminating personal income tax for Dominican workers by 2028, saying he has always been philosophically opposed to the fiscal measure.

Addressing a town hall meeting on Tuesday night of his ruing Dominica Labour Party (DLP) ahead of the September 7 by-election for the Roseau North constituency, Skerrit said that when his party came to office in 2000, the income tax rate was 20 per cent, 35 per cent and 40 per cent.

“We reduced it to 15, to 25, and to 45. And we increased the tax threshold from EC$12,000 (one EC dollar = US$0.37 cents) a year to EC$30,000 a year,” Skerrit said, telling supporters that “that was the first time that we saw any real change where income tax in Dominica is concerned”.

He said that his government further reduced the taxes when it returned to office despite the main opposition United Workers Party (UWP) and the Dominica Freedom Party (DFP) being elected to office in the interim.

“…they never touched it and then we decided this year to allow working people and taxpaying people to keep more money than they’re earning, because for me personally, I’m not an income tax person, I do not like income tax.

“From a philosophical standpoint, I believe that people should be allowed to keep their property that they worked for… I believe more in consumption taxes, that you pay based on what you consume is more equitable

“And so I am not ruling out that if we’re able to implement the measures in the budget, and see an increase in revenues to the country, that by 2028 we remove income tax altogether, and allow them to keep more of what they have,” Skerrit said, adding that his administration’s hope “is that that savings that you will have, you will put the extra room to take advantage of the tourists coming in”.

Earlier this month, Finance Minister Dr Irving McIntyre, presenting the EC$1.15 billion national budget to Parliament, said that the Government has been consistently reducing the income tax burden on working Dominicans.

He said following the country’s economic recovery and its successful completion of the International Monetary Fund-supported programme, from 2009, the Government began providing meaningful income tax relief:

“We reduced the tax rates to 15 per cent, 25 per cent and 35 per cent. We also increased the tax-free threshold first to EC$25,000 and then to EC$30,000, We increased mortgage deductions from EC$15,000 on one property to EC$30,000 and EC$15,000 on a first and second property, respectively. We allowed deductions for student loans, home and medical insurance.”

McIntyre said that all of these have reduced the income tax burden on workers and removed thousands of Dominicans from the income tax net altogether, thereby allowing families to retain a greater share of their income.

“Today, despite a global environment marked by economic uncertainty, this Government will again provide relief to further empower the hardworking people of Dominica. It is therefore my pleasure to propose that effective January 1, 2027, the government will replace the income tax rates of 15 per cent, 25 per cent and 35 per cent with a single, flat rate of 10 per cent,” he said.