Government and the Central Bank have played a vitally important role in this economic development, but it is, quite appropriately, a supportive and facilitating role, with two remarkable exceptions. The first is the origin and nature of Barbados’ international business and financial sector.
At the outset, in the late 1970s, Government determined that Barbados would seek to provide actual services to international companies from offices located in Barbados, and that those services would be subject to income tax, albeit at the preferential rate available to companies that earn foreign exchange exclusively.