October 5, 2021

T&T Chamber Gives Budget Thumbs Up: “Good For Business”

By Newsroom

The Finance Minister has received ‘thumbs up’ from the T&T Chamber of Commerce, which says it is satisfied with majority of the measures announced in Monday’s budget reading.

Cosigning the need to become less dependent on oil and gas revenues, the Chamber commended government’s plans to focus on advancing T&T’s digital space to stimulate business activity.

“We are optimistic regarding the rebound of energy commodity prices and believe that the budget is based on reasonable price assumptions. In tandem with the review of the energy taxation regime, it will to help ensure that we remain competitive and allow for some investment activity to boost this sector. However, we must be steadfast in the efforts to transform our economy away from energy dependency. The commitment to engage the private sector in the strategic growth of a number of sectors will be an important aspect of this transition,” it said.

The Chamber believes the features of the budget were “good for business”.

“The Minister has outlined some commendable initiatives to stimulate business activity, particularly in the manufacturing and export and we anticipate the implementation by the stated timeline. However, for the incentives to have the desired effect, long standing challenges such as delayed VAT and tax refunds must be regularised as stated.”

“The announcement to increase enforcement of tax collection along with the full operationalisation of the TTRA with the proposed governance structure will allow for much needed fair and efficient revenue collection, and closing of the tax gap. We reiterate that the implementation of a TTRA should be accompanied by a strong Taxpayer Bill of Rights. The Government’s thrust towards greater digitalisation is a positive step towards a modern and efficient operating environment,” it said. 

“The Digital ID and Electronic Funds Transfer Window are all measures which we believe will significantly improve the customer interface with public services and also make doing business easier once they are fully implemented.”

The Chamber is also in support of the proposal to implement market based pricing for electricity, water and fuel to reduce transfers and subsidies along with the various mechanisms to ensure protection for the most vulnerable in society.

“To effectively rebound from the current economic challenges and to initiate economic transformation, the timely implementation of the measures announced in today’s Budget is crucial,” it said.

 

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