Barbados has collected more than $150m in additional corporate taxes under new global rules, but business leaders warned on Friday that unless public services are modernised quickly, the island risks losing companies to more efficient jurisdictions.

The Qualified Domestic Minimum Top-up Tax alongside the Pillar Two framework – which establishes an effective 15 per cent tax floor for large multinational enterprises and a nine per cent rate for domestic companies – has delivered a dramatic boost to public finances.

Barbados introduced the tax to align the tax system with international standards and protect its corporate tax base. The Pillar Two reforms, led by the Organisation for Economic Cooperation and Development (OECD), the grouping of the world’s richest nations, are part of a global shift to curb profit shifting by multinational companies.