By Marion Ali, Staff Reporter
Tropical Storm Erika has dealt a major blow to Dominica’s revenue stream, said that country’s Prime Minister Roosevelt Skerrit in his address to Dominica’s this week.
Skerrit said the impact has already been felt in Value Added Tax (VAT) revenues.
“Government revenues are down; expenditure is on the rise and revenue has fallen considerably,” Skerrit said.
“Just to give you an example of the impact of this disaster, VAT revenues for the month of August was EC$10.3 million (US$3.8 million); for September, VAT revenues originally projected at EC$11.4 million (US$4.2 million)stood two days before the end of the month at EC$4.2 million (US$1.5 million). That scenario is replicated across government’s revenue stream.”
Skerrit explained that as a result of the impact on the island’s revenues, government could not realistically grant tax and duty waivers to every investor.
Skerrit said that as a government they will try however possible to assist those hardest hit as well as those with the potential and capacity to in turn rebuild and rebound to generate much-needed revenue for the country.
Tropical Storm Erika ripped through Dominica in late August, causing flooding and landslides that caused the deaths of over 30 people; C$1.2 billion (US $444 million) to restore this country to its previous condition.