RADHICA DE SILVA
radhica.sookraj@guardian.co.tt
Business owners say while they welcome the Government’s plan to make $1.6 billion available for Value Added Tax (VAT) refunds, they believe there should be a deferral of property tax this year, as many entrepreneurs are struggling to pay their bills.
Speaking to Guardian Media shortly after Finance Minister Colm Imbert presented the Mid-Year Budget Review in Parliament on Monday, Greater San Fernando Chamber of Industry and Commerce president Kiran Singh said the reimbursement of VAT refunds was welcome news. However, he said issues of inflation, the rising cost of living and a deferral of property tax should have been addressed.
“We were disappointed that property tax will come on stream. We had hoped for a delay in property tax. We are aware that property tax is an income-generating tool and is necessary to cover expenses but we are now coming out of the pandemic and we have now started to flex and stabilise. Property tax is an unforeseen expense that we haven’t catered for. This will put a strain on the business economy,” Singh said.
He noted that a $100 million tranche for secondary road repairs was welcome news, as deplorable roads impacted negatively on business growth.
Singh also said the digitalisation of local government services was long overdue.
“We need total digitisation of all government services and improvement of the ease of doing business. The cost of living is cause for concern and the food import bill is very high,” he added.
It was also commendable that the Government was using money from the Consolidated Fund, rather than borrowing to spend, he added.
The Government is seeking approximately $3.08 billion in supplementary funding for fiscal 2022 to pay outstanding monies owed to contractors, and janitors, pay VAT refunds, digitalise local government, execute road repairs and desilting of watercourses, as well as to pay pensioners and public servants.
“When the minister says VAT refunds will be given a higher priority, we expect this will add to the cash flow of businesses that have been languishing. Right now, we have difficulty meeting the utility bills,” he said.
He also noted that payment of arrears owed to janitors, security companies and maintenance workers will assist small companies in staying afloat.
Meanwhile, Confederation of Regional Business Chambers coordinator Jai Leladharsingh agreed inflation statistics should have been provided.
“Inflation is dangerous to our economy and we wanted to hear more on this. What I wanted to hear is what is being done to bolster agriculture and our food security. What is going to be done to revive the tourism sector both in Trinidad and Tobago,” Leladharsingh said.
San Juan Business Association president Vivek Charran told Guardian Media that while VAT refunds and payments to contractors could be a stimulus to the economy, this can only make sense if refunds are paid promptly.
He said property tax was coming this year and people should make the necessary adjustments to accommodate the tax, seeing that it had already been deferred before.
“I was hoping to hear that they may have reduced taxation on car parts to take the edge off the petroleum bill. I also hoped they would give more concessions for hybrid and electric vehicles, so we can move away from fossils,” he added.
Charran also said crime remains an issue that must be addressed.
Meanwhile, president of the Chaguanas Chamber Richie Sookhai said businesses have been suffering, noting, “The Government should not implement the property tax now to create more hardship for people.”
Sookhai said the VAT refunds will put money back into the pockets of the business owners. However, he noted that additional incentives should have been provided to medium and small entrepreneurs, who could go out of business because of disruptions in the global supply chain.
