A new piece of legislation passed in the House of Representatives on Tuesday has granted sweeping tax and legal exemptions to the Corporación Andina de Fomento (CAF), marking a significant step in the country’s partnership with the Latin American development bank.
The “Agreement on Immunities, Exemptions and Privileges between CAF and Grenada Bill 2025,” which was introduced in the Lower House by Leader of Government Business Philip Telesford, allows the agreement to take retroactive effect from April 17, 2024, and commits the Government to fulfill its financial obligations using the Consolidated Fund.
Under the terms of the agreement, CAF is exempt from a wide range of national laws, including Grenada’s Stamp Act, Income Tax Act, Property Tax Act, Excise Tax Act, VAT Act, Property Transfer Tax Act, the Banking Act of 2015, and the Aliens (Land-Holding Regulation) Act.
Additionally, the corporation and its employees will not be required to pay customs duties, service charges, or environmental levies, as provided under Article five ( 5) of the agreement.
Finance Minister Dennis Cornwall welcomed the passage of the bill, noting that Grenada’s US$4.998 million investment in 325 Series C shares of CAF positions the country to access low-interest loans, technical assistance, and development funding.
“We are likely to get dividends from that investment,” Cornwall told Tuesday’s parliamentary sitting, highlighting the long-term benefits of joining the regional financial institution, whose Caribbean regional headquarters is based in Trinidad and Tobago.
Economic Development Minister Lennox Andrews also supported the legislation, recalling that even prior to Grenada’s formal membership, the country had received an EC$50,000.00 grant from CAF to support the 2023 UNLEASH cultural and creative industries conference.
The introduction of the bill comes approximately one (1) year after Grenada signed the Share Subscription Agreement in Washington, D.C.
The legislation, which was passed in the Lower House with little resistance or debate, is expected to be tabled in the Upper House in the coming days, where final approval is required before Grenada’s membership is formally recognised.
