DOMINICA-ECONOMY-PM responds to opposition criticism about economy
ROSEAU, Dominica, CMC - Prime Minister Roosevelt Skerrit has responded to opposition criticisms about the economy saying that several key measures have already been implemented to reduce the cost of living in Dominica.

The newly formed Peoples Democratic Movement (PDM) and the parliamentary opposition United Workers Party (UWP) have argued that while some attempts were made regionally to address the cost of living, Dominica's own unique economic situation was ignored.

But Skerrit, the minister for finance in the Dominica Labour Party (DLP) government, said relief measures were announced as early as 2007.

"One has to do with the removal of income tax on pensions. We have also increased the tax threshold; some persons are no longer paying income tax in Dominica," the finance minister said.

"The increase of scholarships and bursaries grant were also mentioned in the last budget and a number of items are also zero rated so they don't attract the Value Added Tax," he added.

According to the Dominica leader, international factors have been largely responsible for rising costs.

"A number of things which affect the prices in Dominica have to do with imported inflation; things that government in the region have no control over," Skerrit said.

At the last inter-sessional meeting in The Bahamas, regional leaders decided on the two-year suspension of the Common External Tariff (CET) on certain goods in a bid to bring prices down.

Prime Minister Skerrit said last week that he will be announcing additional relief measures in his 2008/2009 national budget in June.

CMC/bh/vd/2008