Current tax system being simplified by reducing the number of taxes

With over $600 million in tax debt, the government of Grenada has announced a year-long tax amnesty starting January 2023.

Dickon Mitchell, Grenada’s prime minister and minister of finance, who made the announcement, said the amnesty will forego all interest and penalties for the total arrears going as far back as December 2021. To halt the further accumulation of arrears, the prime minister promised that 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.

Declaring that, “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”, Mitchell announced that the current tax system is being simplified with the number of taxes being reduced. He emphasised that efficiency is important in maintaining a good tax system and, as such, the Government was making strides in improving the current system.

IRD improvements coming

In 2023, the Inland Revenue Department (IRD) will also conduct property revaluation, which will allow for a more growth-friendly tax system. The new property values will be implemented in 2024.

“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) programme will be identified as non-tax revenue as of January 2023. 

According to Mitchell, the CBI and Residency by Investment (RBI) programmes are a $29-billion industry that largely contributes to the country’s economy. The prime minister highlighted that strengthening the CBI and National Transformation Fund programmes is a major goal for 2023, stating that this will require continued partnerships with entities such as the United States and European Union.

Mitchell added that the newly implemented measures would ensure the transparency and sustainability of the programme.