Chairman of the Barbados Private Sector Association, Ed Clarke believes the local private sector will benefit significantly from new tax measures announced by Prime Minister Mia Amor Mottley.
Under the new measures, come next January, a significantly lower sliding scale corporate tax rate will be applied instead of separate rates for domestic and international business companies, which has been the case for the past 40 years.
For many local companies the reduction will be significant, as many of them will go from paying approximately 30 per cent corporation taxes down to around five per cent and even lower.
The measures are being implemented in response to the Organisation of Economic Cooperation and Development's base erosion and profit shifting programme.
Those requirements will effectively see the dismantling of Barbados' existing international business infrastructure over the next month.
Mr. Clarke says the resulting lower tax rate for local companies opens up new opportunities.