Budget 2022/23: Dominica to remove VAT on agriculture tools, potting soils, says PM Skerrit 

While addressing the parliament sessions, PM Skerrit added that when the VAT was implemented in 2006, the Government exempted the import and supply of agricultural inputs, equipment, machinery and other products used in agriculture. 

Budget 2022/23: Dominica to remove VAT on agriculture tools, potting soils, says PM Skerrit 
Budget 2022/23: Dominica to remove VAT on agriculture tools, potting soils, says PM Skerrit 

Roseau, Dominica: Prime Minister Dr Roosevelt Skerrit, during his billion-dollar 2022/23 budget presentation, announced that Government would remove Value Added Tax (VAT) on agricultural tools and potting soil. He also declared a reduction in VAT on various other things. 

While addressing the parliament sessions, PM Skerrit added that when the VAT was implemented in 2006, the Government exempted the import and supply of agricultural inputs, equipment, machinery and other products used in agriculture. 

“We exempted motor vehicles imported, by qualifying farmers, from excise tax. Import duties had already been removed on these goods. To support our efforts in achieving increased production in agriculture, effective September 1, 2022, Government will also remove VAT on agricultural tools and potting soil,” said the prime minister. 

He also announced a maximum of $10,000 grants to first-time home buyers and builders, which started in September 2020 and will continue this year. An amount of $1.0 million has been allocated for this Programme.

Along with this, during this budget presentation, Prime Minister Skerrit also announced a temporary reduction in the fees on the transfer or purchase of land. This reduction will be made permanent when the temporary measure expires. 

Therefore, effective November 1, 2022, the following fees will be applicable on the transfer of land: 

  • Stamp duty 2 percent 
  • Judicial Fee 1 percent 
  • Assurance Fund 1 percent
  • The fee to Lawyers A maximum of 2 ½ percent 54 
  • The fees payable by the seller of the land will remain at 2 ½ percent

Besides this, PM Skerrit also announced a temporary Reduction in Motor Vehicle Licenses and the Removal of Highway Levy. 

He asserted, “As all of us are aware, the price of fuel has increased worldwide as a result of shortages caused by the Russia-Ukraine War. We are mindful of the negative impact on all residents.” 

Therefore, effective May 2022 the Government began granting subsidies on import of diesel and gasoline. Notwithstanding these subsidies, this Government remains concerned about the impact of the increased fuel prices on the people who provide transport services, for example our bus, taxi and truck owners. 

Therefore, Government will grant a 50 percent reduction in the motor vehicle licenses on: 

  • Public service vehicles are used for carrying passengers, for example, taxis and public buses. 
  • Trucks and dumpers are available for hire. 

This measure will be for one year, effective August 1, 2022, to July 31, 2023. 

In addition, Government will discontinue the Highway Maintenance Levy, which was imposed in September 2015 also, effective August 1, 2022. The discontinuation of the Levy will result in savings of $100 for owners of private vehicles and $150 for owners of commercial vehicles, truckers, dumpers and trailers. 

Therefore between these two measures, a minibus owner who currently pays $880.00—that is, $730 for motor vehicle licences and $150.00 for Highway Levy—will pay $365.00 on renewals between August 1, 2022, and July 31, 2023; thereby saving $515.00 over the next year, and $150.00 thereafter. The savings are much higher for the large truck and dumper owners.