By Staff Writer
ROSEAU, Dominica, Nov 10, CMC – The Dominica government has tabled legislation aimed at providing a bridge pension to public officers until they reach 65 years.
Finance Minister Dr. Irving McIntyre, who piloted the Pension Amendment Act on Monday night, told legislators that the bill proposes two policy amendments to existing legislation.
He said the Act presently provides for a bridge pension to be paid by government up to the age of 65 years for persons who retire after being on permanent establishment for more than 10 consecutive years.
“Government retirement age is 60 years. However, pensioners may choose early retirement after their 55th birthday. A bridge pension is required to provide financial support to retirees until they become qualified for full pension from the Dominica Social Security,” McIntyre said.
He said there are currently two issues affecting retirees from the public service, noting that individuals who are employed as non-established workers are required to retire at 60 years, but they are not entitled to a bridge pension.
“This, therefore, forces them to apply for early pension from Dominica Social Security, which is much less than if they began to receive pension from age 65,” McIntyre said, noting that the government’s decision to pay the bridge pension to retirees in the public service recognises the service of public officers over several years.
“…for some retirees who want permanent establishment, the government bridge pension is higher than the Social Security pension. Therefore, at age 65, they begin to receive less pension. The bill before the House addresses both matters.”
McIntyre said that it provides for non-established workers retired on or after 1st of July 2025 to receive a bridge pension until the age of 65 and for persons who are on permanent establishment and retired from July 1st, 2025, if their pension from the Social Security after age 65 is less than the bridge pension paid by the government.
“Government will bridge that gap by paying the difference between the Dominica Social Security pension and what was received as the government bridge pension to ensure that the retiree maintains at least the same level of pension which was received from the government.”
McIntyre told legislators that “both policies will ensure social safeguard for our retirees, would have contributed immensely to the growth and development of our people and country”.
Meanwhile, Prime Minister Roosevelt Skerrit has told Parliament that the value-added tax (VAT) amendments will discontinue tax compounding in the interest of Dominicans and that importers and consumers will benefit from the measure.
“And this is really a government that is aware, a conscious government, a sensitive government and a government that is responsive to the challenges confronting our society.
“One of the major challenges confronting Dominica and the entire world, no country excluded, is the cost of living and every country in the world is seeking to find ways on how to cushion the impact of cost of living on the citizens of the country.
“We have come to Parliament and removed VAT and import duty on several household and food items. We have subsidised the petroleum products,” Skerrit said, adding that since 2009, his administration has removed excise tax and customs service charge on cooking gas.
“Since 2009, no taxes on cooking gas whatsoever. One of the major themes that came out of those consultations this year was the recommendation to address the compounding nature because it was felt that that would, in a huge way, impact positively the cost of goods on the shelves, the cost of importing things into Dominica.”
Skerrit said there were also discussions about limiting the items, adding, “we could remove some luxury items or remove vehicles from it, and the Cabinet said, no, we will do a whole gamut of imports into the country.
“And so, Mr. Speaker, before that, you had tax on tax. So you had all of these taxes, and then you had VAT on it. And so by automatically removing the compounding nature, Mr. Speaker, there ought to be a direct benefit.”
Meanwhile, Opposition Leader, Jesma Paul-Victor, in supporting the measure described the amendment as “simple,” adding it is in “the best interest of everybody….
“This bill, it was a promise …and that promise was simple, that there would be no more tax on tax,” she said, noting before the legislation “there was VAT on duty, VAT on excise, VAT on charges, but today there will be no tax on tax.
“This bill today ends all of that. Every Dominican who buys something right now, buys anything imported. Almost everything, including food, building materials, appliances, parts, medicines, these things- right now there will be no tax.
“So when you lower the cost on the port, you also lower the prices on the ship. This means, Mr Speaker, that there will be more money in our pockets. As I said, this bill is not complicated at all. It is one section; it deletes two paragraphs, but these two paragraphs will cost every family in this country more money every time that they go to the shop,” the Opposition Leader added.
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