Home Building and Renovation Incentives on Montserrat Can Greatly Assist The Construction Industry

To rebuild the economy of Montserrat will require an effort that is both a mix of government policy and private sector execution.

During the halcyon years of Montserrat's economic dominance over the Eastern Caribbean, one key sector that led this period of growth was the construction sector. Hurricane Hugo came and destroyed the island, heralding another great period of growth based around the re-construction of homes and properties.

The Soufriere Hills Volcano has brought such devastation once again to Montserrat, however, the question must be asked as to whether construction can once again lead the way for economic activity to take flight on Montserrat.

If the answer is yes, then what incentives can government provide that citizens and nationals both at home and abroad can take advantage of to help in the rebuilding of the island's economic infrastructure?

During the 2017/18 Budget, one such incentive was announced, that can perhaps lend towards giving a hand to the construction industry on the island.

MNI Alive Media understands that one financial institution on island is already considering measures as to how it can capitalise on this incentive to offer assistance to citizens who wish to take advantage of this incentive.

It was announced in the 2017/18 Budget for Montserrat that there would be further Tax Concessions on Homes for Sale or for Rental on Montserrat.

What is now available for persons who are so desirous of taking advantage of the offer is a programme where there has been a reduction from US$300,000 to US$200,000 for the qualifying property value under the Customs Duties and Consumption Tax (Property Developers) (Homes Built for Sale or Rental) (Exemption) Order.

Within this concession, the Government of Montserrat has essentially extended the Duty Free concession on the "importation of building materials and furnishing, for homes that are to be built for the purpose of sale or rental for a period of two years from 1st July 2017."

So this is a programme that is presently available for anyone seeking to build or improve upon their existing property; a reduction from US$300K to US$200K.

This incentive was previously enacted under the Reuben T Meade administration where it was at US$300,000. Under this scheme, the research indicates 7 persons benefitted.

Further home building incentives introduced under the 2017/18 for citizens includes a reduction in the import taxes on furnishings and household appliances for every person on island.

Thus, for a period of two years starting on August 1st, 2017, Import Duties will be suspended on the importation of the following:

• furniture 10%
• fridges, freezers and dryers 10%
• washing machines 15%
• Televisions 40%