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Deloitte Barbados 2024 Budget Analysis

Deloitte leaders in Barbados provide their analysis and insights on the fiscal measures in the 2024 National Budget.

Message from the Managing Partner & Tax Leader, Ikins Clarke


Taxpayers, customers, and retailers are generally among the first to know when a country’s economy starts to improve or decline.  There is always a certain buzz of happiness when things are on the up and a sense of misery and confusion when they deteriorate.  A suite of policies to promote fiscal discipline and economic growth were announced in last year’s budget and there were measures to respond to rising inflation and the protection of the most vulnerable people in our society. The Prime Minister focused on the tax system, regulation along with the social and economic infrastructure.

During the past year Barbados has withstood some strong economic headwinds and there is still the ever-present sense of caution that any extravagance by the government could render these small victories useless in short order.

We therefore expected that the measures outlined in this year’s budget would be geared towards managing inflation, reducing the fiscal deficit and championing the twin challenges of business facilitation and investment. In addition, developing a pragmatic approach to dealing with the constant challenges emanating from the OECD while keeping the ever-important international business sector alive continue to be top priorities.

The Prime minister unveiled several initiatives and incentives which she considers to be part of an ambitious plan to stay on the path of economic growth.  One of the more interesting initiatives is the introduction of a Patent Box regime – A Patent Box tax incentive regime allows companies to apply a lower rate of corporation tax to profits earned from its patented inventions or its research and development. The rate proposed is 4.5%, however,  the details of the legislation to facilitate this initiative will need to ensure that it is in line with the OECD’s BEPS rules.

As expected, the Prime Minister also took time to outline targeted measures to directly impact the pockets of citizens as the country embraces the journey towards resiliency to mitigate the impact of climate change and natural disasters, and the modernization of its utility infrastructure.  These included tax concessions on purchases of water tanks and pumps and land tax rebates for householders in flood prone areas that suffered a flood event – conditional on providing proof of homeowner’s insurance.

To get a flavour of the full impact of the measures, we invite you to reflect on the economic performance of the island over the last year as we analyze the likely impact of the measures announced and share our perspectives on the way forward.  As always, we also invite you to contact any member of our team to discuss these matters further.

Download and read the analysis to learn more.