Taxes will drive us underground

TT Members Clubs Association (TTMCA) president Sherry Persad has warned the gaming industry, which was already downsizing, would either be forced to close its doors or operate underground should Government proceed with its “draconian and punitive taxation measures.”

Persad told Sunday Newsday yesterday all attempts at securing a meeting with Finance Minister Colm Imbert to discuss the taxation measures were unsuccessful.

“After the budget speech came out, we contacted him, we sent letters both to him, the Prime Minister and the Leader of the Opposition but we have gotten no response and when we called his office, we were told by his secretary that he would not be in office until after the debate,” Persad said. “I did another letter and sent it to Parliament so it would be delivered to him, that would have been on Tuesday but instead the minister met with the TTMCA very briefly at the Joint Select Committee where no real discussion on the details of the industry took place.”

“We have downsized a little bit this year as well even before the budget and these taxes will drive the industry further underground and drive others out of business adding to the economic challenges of the country,” she said. And with foreign exchange reserves dwindling, she observed the country continued to lose over US$350 million annually to International Game Technology (IGT) for its assistance with the NLCB’s online games.

“IGT by their contract is supposed to transfer technology to locals, yet after a 30-year contract no such transfer has occurred,” she stated, adding Imbert had to “deal frontally” with the millions in foreign exchange leaving this country.

She also defended members clubs saying they were “owned by the members and not a single owner” as there is a management committee to run the affairs of the clubs.

“The TTMCA categorically and unreservedly reject the idea that we exploit our employees or force them to protest against the despicable taxes. Our employees are well paid and taken care of and are protesting because they know that the foolish taxes conceptualised in ignorance will destroy the industry and cost them their jobs.”

Regarding claims the gaming industry was owned by “foreigners” who are leaking foreign exchange, she said the TTMCA, “Wishes to state that the majority of members clubs are 90 per cent local and there is a minority of foreign involvement.”

“But what exactly is wrong with foreigners investing in Trinidad and Tobago? Minister Imbert has no issue with BP, BG, Shell, Repsol, KFC, Starbucks, Pricesmart, Wendy’s, or IGT and many other foreign investments in our country.” She said the main issue facing the gaming industry was that of enforcement and compliance of existing laws.

“Tax collection is low in the industry as there is no enforcement and if the Government is serious about increasing revenues it will put measures in place to increase the collection of taxes owed.”

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"Taxes will drive us underground"

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