CTUSAB Calls for Greater Tax Relief and Cost of Living Measures in Budget 2025

By Deanzer Roberts

The Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) has expressed mixed reactions to the recently presented 2025 Budgetary Proposals and Financial Statement. While acknowledging some positive measures, the umbrella trade union body believes that the Budget falls short in addressing key concerns such as high taxation, the rising cost of living, and poverty alleviation.

CTUSAB President Ryan Phillips, in his post-budget analysis, emphasized that workers and citizens expected the government to introduce initiatives that would ease financial burdens. He noted that while the announced 2% biennial increase in the minimum wage is a welcome step, the current $340 per week remains inadequate given the high cost of living, particularly in areas such as food, rent, and utilities.

One of the key recommendations from CTUSAB was a reduction in income tax for pensioners, beyond the increase in the income tax threshold. The organization believes that pension income should be completely exempt from taxation to provide greater relief for retirees. Additionally, CTUSAB questioned why the Water and Sewage Tax remains in place despite many households not being connected to the sewage system. The union also called for a review of the Municipal Solid Waste Tax to determine if it discourages property development.

Phillips also criticized the continuation of the 2% tax on overseas credit card transactions, arguing that it penalizes consumers engaging in online transactions—a practice that the digital economy seeks to promote. CTUSAB further recommended a reduction in the 17.5% VAT rate, given the country’s reported economic growth and improved foreign exchange reserves.

The trade union body welcomed the government’s adjustments to maternity and paternity leave policies. The extension of maternity leave from 12 to 14 weeks, along with the removal of the three-child confinement limit, was described as a positive move that aligns with efforts to encourage population growth. CTUSAB, which has long advocated for paternity leave, was also pleased that fathers would now receive this benefit.

However, CTUSAB expressed concerns regarding the Government’s proposed 20% sales tax on salty snacks, cautioning that small vendors and local manufacturers might bear the brunt of this policy. The organization questioned the effectiveness of this approach in tackling health concerns, especially in light of the government’s simultaneous VAT reductions on salted meats such as pigtails, sausages, and stew beef.

Phillips noted that the Budget failed to adequately address the pressing economic challenges facing Barbadians, including high electricity and telephone bills, escalating food prices, and the accessibility of land and housing. He highlighted that there were no new measures introduced to regulate high rental costs, curb alleged price gouging, or address concerns about banking sector practices that impact consumers.

“The government has reported strong GDP growth, a healthy foreign exchange position, and reduced national debt, yet there is no significant move to alleviate the tax burden on citizens or to introduce major cost-of-living relief measures,” Phillips stated.

While CTUSAB acknowledged the Government’s one-off payment of $300 to certain groups, it hopes this will not impact the upcoming Public Sector Wages and Salaries Negotiations.

As the country moves forward in 2025, CTUSAB has urged the Government to take a more proactive stance in implementing policies that directly improve the economic well-being of all Barbadians. The organization reaffirmed its commitment to advocating for fair wages, economic empowerment, and meaningful social and economic policies that benefit workers and the wider population.

General Secretary Dennis de Peiza acknowledged the government’s increase in the personal income tax threshold but stressed that additional provisions are needed.

CTUSAB has urged the government to introduce tax incentives for workers in healthcare, education, and protective services, as well as tax credits for employees pursuing job-related professional development. The Congress also advocated for tax deductions on work-related expenses, including transportation and childcare.

Addressing the high cost of living, CTUSAB welcomed government’s reduction of vegetable and fruit prices but criticized the lack of further action, such as removing import duties and VAT on all fruits and vegetables. The Congress also lamented the absence of consumer protection regulations to prevent price gouging, stressing that many workers continue to struggle with rising expenses.

In addition, De Peiza called for stronger social protection measures, including increased funding for the National Insurance Scheme to ensure timely pension payment