Barbados Prime Minister Mia Mottley has announced a series of social security measures for Barbadian households that will be implemented at the end of this month.

In her address to the nation today, Mottley listed three strategies :

1. An extension of the school meal programme throughout the summer months (July 25 – September 2). This will ensure meals to every child on the island of school age and will cost the country (US$1.25 million dollars (BDS2.5 million).

2. The reduction of Value Added Tax (VAT) from 17.5 per cent to seven per cent on the first 250 kwh of all households for the next six months. She noted this will lead to an average reduction of US$6.80 per household. She notes that although the figure may not seem substantial, over 63 per cent of all houses in the country fall below the 250kwh threshold. This will cost the country US$5.25 million for the period August 1 – January 31.

3. Certain essential items including foods, hygienic and sanitary items will have VAT removed from them for six months until January 31, 2023. The pricing list showing the reduction on each item will be posted no later than Saturday (July 16). This will cost the country US$2-2.5 million.

6-MONTH FREEZE ON PRICES OF ANIMAL FEED, FLOUR

Mottley also mentioned that, for the period July 21 – January 31, supermarkets, farmers, wholesalers, and distributors have agreed to cap mark up prices to 15 per cent and there will be no further increases in the prices of animal feed and flour for the next six months.

Reduction of import tax for hybrid vehicles from 45 per cent -25 per cent and a reduction to 35 per cent for regular vehicles.

The Central Bank Governor has been instructed to investigate and report to the Barbados Ministry of Finance on matters relating to the fees for banking transactions. A due date for the report was not mentioned.

She concluded by stating that what guides the government is the principle of “share the bounty, share the burden”.