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As a Small, Open, Vulnerable Economy, Grenada is constrained in its development by a number of factors, which taken together challenge the country in implementing its WTO obligations, particularly as it relates to the creation of new institutions and in competing effectively in a liberalized trade environment. These include: susceptibility to natural disasters; (…)

In the near future, the authorities expect the pace of economic activity to accelerate triggered by increased activities in the construction sector, both private and public, and expansion in the tourism industry with the opening of the Sandals La Source Resort and Spa. Risks to the prospects include natural disasters/unfavourable weather conditions and weaker economic growth, particularly in the United States, a major trading partner and source of tourists and students.

In 2011, Grenada developed an investment-generation strategy with the goal of increasing private investment in some selected sectors. Five sectors were identified as transformational, and some niches have been identified:
• agri-business: production of organic fruits, vegetables, spices and herbs;
(…)
• energy development: the manufacturing, installation and servicing of solar water heaters and solar-powered products.

Table 2.1. Major trade-related laws and regulations, December 2013
Legislation: Environmental Levy Act
Reference or date of first adoption: Act No. 5 of 1997
Latest amendment: Act No. 13 of 2007

Legislation: Forest, Soil and Water Conservation Act
Reference or date of first adoption: 1st August 1949
Latest amendment: Act No. 34 of 1984

For imports, the tax base comprises the c.i.f. value of goods, customs duties, the Customs Service Charge, the environmental levy and the excise tax. Businesses can charge on their supplies the VAT paid on their inputs.

As well as the VAT, Grenada collects since 2010 an excise tax (ET) on some imported goods (Table 3.6). The tax base includes the c.i.f value, the customs duties, the customs service charges, and the environmental levy. Under some circumstances, excise tax paid on imports can be refunded if the goods are in compliance with the conditions for drawback of duties (Customs Act).

An environmental levy applies to imported vehicles, "white goods" , and beverage containers. The rate is 1% of the c.i.f. value for "white goods", and ranges from 2% to 30% of the c.i.f. value for cars (depending on the age) and trucks over five years old (depending on the tonnage) (Table 3.7). For plastic or glass containers, it is levied at a rate of EC$0.25 to EC$0.50 per container. The levy may be refunded partly (75%) if the importer produces to the Comptroller of Customs, within six months of importation, satisfactory evidence of re-export of the container or its disposal in a manner acceptable to the Grenada Solid Waste Management Authority. A full refund is granted for containers imported for manufacturing purposes that are re-exported.

Table 3.11 Summary of taxes and mandatory contribution in Grenada
Tax or mandatory contribution: Environmental levy
Rate: Specific, or between 1% and 30%
Tax base: c.i.f. value of imports
Comments:-

Table 4.2 Taxes and charges in the electricity sector, December 2013
Charge: Environmental levy
Domestic: EC$0 - 5

Grenada applies a levy of US$3 per visitor arriving by ship, a cruise passenger tax, and an environmental levy on vessels to cover the costs of garbage disposal.