Dominica Prime Minister Roosevelt Skerrit announced plans to review Dominica’s minimum wage and reduce corporate taxes as part of his administration’s 2025 economic agenda.
Speaking during a live interview on state-owned DBS Radio on Wednesday, Skerrit highlighted the government’s efforts to address rising living costs and boost private sector investment.
“Our revenue for the first six months of the financial year 2024-25 is better than the same period 2023-24,” Skerrit stated, noting an uptick in corporate tax revenue as an indicator of economic activity. He outlined plans to lower the corporate tax rate from its current 25% to allow businesses to retain more funds for reinvestment, aiming to expand the country’s tax base.
Skerrit also acknowledged the challenges faced by minimum-wage earners amid rising costs. “We are looking at a further review of the minimum wage to ensure those reliant on it are better positioned to withstand increases in the price of goods and services,” he said, emphasizing that Dominica is not alone in grappling with inflation, as similar challenges are evident globally.
The Prime Minister touched on the broader economic pressures caused by geopolitical conflicts, including the Russia-Ukraine war and instability in the Middle East, which have impacted global grain supplies and contributed to rising living costs. He expressed optimism that stabilizing international conditions would ease economic strain.
In the interim, Skerrit reiterated the government’s commitment to avoiding direct taxation on citizens, continuing investments in housing, and maintaining major infrastructure projects to provide employment opportunities. He acknowledged the financial burden on the government, including paying taxes on goods and services, but emphasized that long-term subsidies on goods would be unsustainable.
“We will continue to make strategic investments and support measures to alleviate economic pressures, but we also have to ensure fiscal sustainability,” Skerrit said, highlighting the need for balance in navigating Dominica’s economic challenges.
