Express Business has taken the views of various chambers and associations on their recommendations for the fiscal year 2022/2023.
The Trinidad and Tobago Chamber of Industry and Commerce (TTCIC) wants to see Finance Minister Colm Imbert introduce strong policy initiatives to attract domestic and foreign investment.
TTCIC hopes to see improved ease of doing business through full automation of customs processes and an acceleration of digitization efforts across the public sector.
The chamber also called for an expansion of the e-tax payment facility to allow online payments below $100,000 and a more efficient value added tax (VAT) refund system.
The House also demanded the revision of the six percent tax on industrial properties to be strictly applied to physical property and not the installed cost of indoor or outdoor plant, machinery and equipment.
“Imposing a top-line tax on business income will become a serious disincentive for further investment at a time when the emphasis is on creating a favorable environment for business growth,” he stressed.
The TTCIC also called for a boost to the entertainment sector by offering a 50 percent discount on the use of state-owned facilities/venues for cultural events and parties until the end of 2023 to help the sector recover from losses incurred during Covid-19 pandemic.
“More partnerships with the private sector, as events and carnival groups carried out by private promoters have generated high demand from tourists and generated foreign exchange. Metrics related to the development of the Carnival product should be established for the use of funds,” he added.
Improve the ease of doing business
American Chamber of Commerce of Trinidad & Tobago (AMCHAM TT) chief executive officer Nirad Tewarie said the chamber’s budget recommendations were sent to the Ministry of Finance in July and he hopes the budget will have clear objectives, progress reports on previous announcements and policies. to facilitate an attractive business environment.
One of the many recommendations sent to the Minister of Finance, Tewarie said, was the need to accelerate the digital transformation agenda, which AMCHAM TT believes is key to Trinidad and Tobago’s economic recovery and growth.
“This will require the implementation of the digital policy and data interoperability framework to improve innovation and develop solutions to support the delivery of citizen services. We are aware that the Ministry of Digital Transformation has worked to increase its internal capacities and to create the ground for what we hope will be a year of realization, as the Government has continuously committed itself to these initiatives”, he emphasized.
AMCHAM TT also stressed that more needs to be done to improve the ease of doing business.
Tewarie said, “We need to implement a fully automated Customs process by ensuring a functional integration with TTBizLink, increasing the use of the ASYCUDA platform, revamping customs hours, including handling unnecessary overtime and redesigning the sites to increase efficiency at airports and seaports.”
Acting on recommendations
Over the years, Tewarie noted that some of AMCHAM’s recommendations have either been implemented or announced as part of the government’s agenda.
In 2017, he said the House called for improved enforcement mechanisms to reduce “illegal” cigarettes on the market and to review tax schemes in the cigarette industry.
“The Minister of Trade and Industry convened the first meeting of the tobacco task force of the Anti-Illegal Trade Task Force in March 2022.
The working group discussed several key priority issues to combat the illegal trade at the local level, such as the assessment and identification of the trade at the local level, the current high levels of taxes and the main recommendations to address this issue, the Tobacco Control Regulations.
Another recommendation in 2018 called for supporting research and development (R&D) in private companies by allowing a write-off of 75 percent of working capital used to support innovation against chargeable income tax, up to a limit of two. percent of a company’s annual revenue in the previous year.
Tewarie said the government’s announcement on the matter was to implement a research and development capital allowance for up to 40 percent of the expenditure incurred by companies engaged in research and development from January 2022.
“In his budget reading in October 2021, Finance Minister Colm Imbert said the fiscal measure would cost about $25 million and would benefit about 1,000 companies. Outside of the energy sector, there is no such tax reduction.”
In 2020, Tewarie explained that the chamber recommended the removal of VAT from personal computers and other technological products for the purpose of distance work and distance learning in the short term.
“The government removed all taxes on computers, laptops and tablets on September 5, 2020, in time for the reopening of all schools and educational institutions. And in 2021, AMCHAM called for the operationalization of a T&T High Commission in Georgetown to advance T&T’s national interests, with a focus on economic diplomacy and trade promotion, as Guyana is projected to be the fastest growing economy in the hemisphere western countries over the next decade and in May 2022, a high commissioner was appointed.
Diversification
The Trinidad and Tobago Manufacturers Association (TTMA) has noted the continued push to diversify the economy and the increased support the government has given to the manufacturing sector in each successive budget.
“The move away from traditional oil and gas revenues is welcome, but it has been gradual. While we appreciate this move towards diversification, TTMA hopes that the trajectory of investment in manufacturing will continue and there will be a more concerted effort to move away from the economy’s reliance on the energy sector to generate economic growth and development. The Energy sector continues to be a very important sector for the country, but a better use of the finite resources from this sector must be made to diversify and grow the economy; preparing for the inevitable depletion of fossil fuels,” explained TTMA.
Specifically, regarding the question about the seven budgets presented by the Government, TTMA said that it should be noted that in the last three iterations of the budget, including this year’s presentation, T&T would have faced the Covid-19 pandemic that took its toll on the economy. country.
“The challenges brought by the pandemic to T&T allowed the government and TTMA’s plan for export-led growth to be scaled back. Thus, the last two budgets were largely geared towards the sustainability of lives and livelihoods in the country, as expected, and the reading of the 2022/23 budget may well follow this scenario. TTMA remains optimistic that the Government will balance life insurance with the maintenance and growth of livelihoods in this coming fiscal year”, it emphasized.
TTMA added among several recommendations over the years that have been implemented include the Government’s commitment in 2020 to support the association’s strategic plan to double exports by 2024/2025.
