The cost of living in Barbados is about to go up.
Starting July 1, consumers will be facing a substantial hike in goods with the National Social Responsibility Levy (NSRL) moving from two percent to 10 percent, the introduction of a two per cent sales tax on foreign currency transactions and increases in gasoline and diesel prices.
Minister of Finance Chris Sinckler, who made the announcement on Tuesday night in the highly anticipated 2017 Financial Statement and Budgetary Proposals presentation, acknowledged that the measures were not easy, but said they were necessary if the island were to maintain its 2 to 1 currency peg with the US dollar, and reduce the wide gap between revenue and expenditure.
According to Caribbean 360 News, the Government is expecting to earn $543 million from the measures, which will go towards reducing a spiralling fiscal deficit.
The measures come on the heels of appeals by the private sector and Leader of the Opposition Barbados Labour Party Mia Mottley for no new taxes.
