Finance Minister Camilo Gonsalves says the fiscal measures for Budget 2023 will focus on the reduction of income taxes for both individuals and corporations and increases in user fees for some services to maintain some level of parity with the cost of delivering these services and the airport service.
Gonsalves said that on June 12, 2021, in the midst of the COVID-19 pandemic, the airport service charge was reduced by 50% from $100 to $50. However, as travel restrictions internationally and regionally have been rolled out, the government believes that it is time to return the airport service charge to $100.
“To this end, with effect from May 1st, 2023, the airport service charge will revert to XCD $100, or $40 USD.” An additional $4 million in revenue is expected from this measure. These funds will flow directly to the Argyle International Airport to “bolster the operation”.
“The overstayer fee under the Immigration Restriction Act is currently $25 if you overstay.” In budget 2020, this fee was increased to $100 but was not implemented along with the extension of stay fees, which were also increased to $100. As a result, most people who wish to stay longer in the country simply pay the lower overstay fee than they do to apply for an extension. To address this act of arbitrage, the overstayers’ fee will be increased to $100 with effect from February 1, 2023. This measure is expected to yield $100,000 in additional revenue”.
“The revenue measures for which implementation was deferred in the 2020 Budget were maritime administration fees, hospital fees, radiological fees, laboratory fees, dental fees, fees for agricultural services, and fisheries division fees. From that list of deferred measures, the following will be implemented in Budget 2023, with effect from the 1st of February: The Maritime Administration fees, the fees for agricultural services, and the Fisheries Division fees The health-related fees will be further deferred pending the completion of the comprehensive review of user fees that is being undertaken as a part of the “Health Sector Resilience Project”, Gonsalves said.
