Dominica: Parliament approves EC$248.5M supplementary estimates and passes tax, pension bills

Dominica: Dominica’s House of Assembly approved supplementary estimates of EC$248,517,384.02 and four bills were also passed including the import duties, income tax, and public service pensions, before the house adjourned sine die.

The sitting was the Third Meeting of the Fourth Session of the Eleventh Parliament. The tax bills follow the 2026-27 National Budget presented on August 4, 2026.

Supplementary Estimates

The estimates, which were passed without amendment, covered a wide range of spending. The members of government highlighted EC$50 million for the international airport, EC$8.6 million for the Loubiere to Bagatelle road, EC$4.7 million for the Silver Lake Ophelia rebuilding project and EC$500,000 for electoral reform.

The grants also included EC$18 million from the People’s Republic of China for village councils.

Finance Minister Dr. Irving McIntyre highlighted that only 19 percent of the supplementary was borrowed. The remainder comes from grants and government resources.

“Every single cent in this supplementary estimate is well accounted for,” he announced.

Import Taxes

The Value Added Tax Amendment Act & the Excise Amendment Act removes compounding of taxes on imports. This means VAT and Excise tax will only be charged on the cost, insurance and freight value. It will no longer be charged on customs service fees, environmental surcharges and import duty.

Prime Minister Dr. Roosevelt Skerrit noted that the change took effect on October 1, 2026 and the amendments give it legal force. He mentioned that it will benefit both importers and consumers.

“Every single human being in Dominica will benefit, including the dead ones,” he said, adding that even candles for graves will be cheaper.

Garbage trucks and associated equipment will also be exempt from excise tax under the excise bill. This will encourage private companies to offer collection services.

Income Tax

The Income Tax Amendment Act, which was passed with minor amendments includes four key points.

Businesses can save up to 0.5% of their gross sales into approved vulnerability funds each year. This can be deducted from taxable income. Also businesses will receive an employment tax rebate of up to EC$10,000 a year for two years from October 1, 2026.

Commercial rental building owners will be able to claim a deduction of 3 per% of qualifying expenditure each year, up to a maximum OF EC$30,000 for up to ten years.

From January 2027 income tax will be 10% and the income earned outside Dominica will no longer be taxed.

Dr McIntyre stressed that the employment rebate will be in cash.

“This is not an income tax deduction. It is a cashback,” he said.

Skerrit said that the flat rate will generate over EC$40 million in extra revenue. and hinted that there could be more reductions.

“I see the day maybe by 2028 that income tax will be no more in Dominica,” he said.

Pensions

The Pensions Amendment Act extends a bridge pension until age 65 to non-established workers who retired on or after 1 July 2025. It also requires the government to top up the difference for retirees whose Social Security pension at 65 is lower than their bridge pension.

Skerrit said the retroactive measure would give retirees certainty between the retirement age of 60 and the start of Social Security at 65.

“A retired man is a retired man,” he said, recalling the removal of income tax on pensions.

Opposition concerns

Opposition Senator Parris agreed with the excise measures but questioned if the savings will reach the consumer.

“A reduction in tax paid at the port does not automatically translate into a reduction in the price paid by the consumer,” he said, calling for monitoring. He also said garbage trucks alone would not guarantee efficient waste collection.

Senator Philip, who spoke in favour of the estimates, said she has been keeping a close eye on the airport.

“It’s like a Netflix show,” she said, referring to the updates on the project every day.