by Linda Straker
- Waiving of Value Added Tax, Common External Tariff and Customs Service Charges among fiscal incentives for reconstruction of physical infrastructure
- Beneficiaries must have been directly affected by Hurricane Beryl
- 960 farmers and fishers expected to benefit from EC$11.6 million payout
Payment of EC$11.6 million to farmers and fishers and waiving of Value Added Tax, Common External Tariff and Customs Service Charges are among fiscal incentives announced by Government to assist people affected by the passage of Hurricane Beryl on 1 July 2024.
The worst-affected areas are the northern part of the country, which encompasses Carriacou, Petite Martinique, and the parish of St Patrick, but damages were also caused to a significant number of properties in the parishes of St John and St Mark.
Explaining that the new incentive measures are specifically for the reconstruction of physical infrastructure, Finance Minister Dennis Cornwall said that Government will grant a waiver of Value Added Tax (VAT) on local purchases while imported purchases will face more waivers.
“For those who will be importing goods and materials from other countries to rebuild, Government will waive the CET or the Common External Tariff; VAT and the Customs Service Charge on imports,” Cornwall announced in a news conference on 7 August.
He said that Government will lose a significant amount of revenue because of these measures and the plan is to ensure that only people affected will benefit from the incentives. “Beneficiaries must have been directly affected by Hurricane Beryl,” said Cornwall who explained that all beneficiaries must comply with the building code when reconstruction or constructing a building.
“If you want to get the tax incentives, you have to ensure that you are building to the appropriate code. You need to ensure, therefore, the incentives on things like hurricane straps, using screws perhaps instead of nails on the type of wood or zinc sheets be used and ensuring that the designs for the homes are done in a way that it is less likely to suffer damage,” said Prime Minister Dickon Mitchell.
As for farmers and fishers affected by the hurricane, Agriculture Minister Lennox Andrews said the ministry will be providing income and livelihood support for people in both Carriacou and mainland Grenada, but the focus will first be on farmers and fishers in Grenada.
“For income and livelihood support, in broad terms the assistance will take the form of direct income support and material support,” said Andrews who explained that the grand total in payout will be EC$11.6 million with 960 farmers and fishers expected to benefit.
