By Shanieka Smith

Staff Writer

#Grenada, December 8, 2022 – With over $600 million in tax debt, the government of Grenada has announced a year-long tax amnesty starting January 2023.  Prime Minister and Finance Minister Dickon Mitchell said the amnesty will forego all interest and penalties for the total arrears as far as December 2021.

Mitchell said “many of us have not been paying our fair share” and a change needs to be made in order to prevent any further increase in debt.

“To halt the further accumulation of arrears, all arrears for 2022 onwards will be strictly enforced pursuant to the Tax Administration Act, including the requirement of tax clearance certificates to travel, to access loans from financial institutions, garnishees, et cetera,” he added.

Mitchell noted that efficiency is important in maintaining a good tax system.  He said the government will make strides to improve the current system by simplifying it and reducing the number of taxes.

In the coming year, the Inland Revenue Department (IRD) will also conduct property revaluation, which will allow for a more growth-friendly tax system.

“The IRD will implement a pilot that will allow public officers to pay their property taxes through monthly deductions,” Mitchell said, adding that private sector firms will also be included.

All revenues from the Citizenship by Investment (CBI) program will be identified as non-tax revenue as of January 2023.  According to Mitchell, the CBI and Residency by Investment (RBI) programs are a $29 billion industry that largely contributes to the country’s economy.

Mitchell said that strengthening the CBI and National Transformation Fund programs is a major goal for 2023, and this will require continued partnerships with entities such as the United States and European Union.  He added that the newly implemented measures will ensure the transparency and sustainability of the program.