AGP Executive Report
Last update: 7 hours agoIncome Tax Overhaul: Dominica will cut personal income tax to a single flat 10% from January 1, 2027, replacing the 15%/25%/35% tiers while keeping the tax-free allowance for people earning EC$30,000 or less. Small-Business Credit Boost: From December, an extra EC$19 million in concessionary lending will flow through the AID Bank to micro, small and medium-sized enterprises at 3.5% interest on a reducing balance, with up to 10-year terms and a six-month grace period. Customs Reform: Starting October 1, government will end “tax on tax” at ports by calculating Excise Tax and VAT on imports using only the CIF value, aiming to lower clearance costs and simplify procedures. Budget Growth Outlook: The IMF projects Dominica’s economy will grow 3.1% in 2026, building on 4.5% growth in 2025. Energy & Tourism Infrastructure: Dominica says geothermal power is now generating electricity from its own resources, while the international airport remains on track for 2028 completion with 400+ Dominicans employed; President Burton also flagged airport fires and contractor vehicle losses as risks to major projects. Agriculture Branding: Government is investing EC$1.5 million to expand beekeeping and develop a national honey brand, alongside plans for an agro-processing facility. CBI Under Pressure: The EU has set a June 1, 2028 deadline for Dominica and four other Caribbean states to phase out citizenship-by-investment schemes or risk losing Schengen visa-free access. Marine & Creative Economy: A Portsmouth marina is planned to grow marine tourism, and a Creative Economy Development Agency is set to be created to coordinate support for artists and cultural workers. Local Business & Health: President Burton urged Dominicans to buy local and cited 1,100+ hypertension diagnoses from 2020–2025, pushing prevention as a national priority.
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