TTMA: No turnaround yet in local market

FINANCE MINISTER Colm Imbert declared the economy “has turned around”, during the mid-year review yesterday but the TT Manufacturers’ Association (TTMA) disagrees.

TTMA president Christopher Alcazar told Newsday, “While we are seeing many of our manufacturers continue to push outward regionally and are observing export growth, many are not yet seeing the signs of a ‘turnaround’ in the local market.

Locally the market continues to be soft and sluggish.”

While legislation for the much-touted Revenue Authority is to be brought to Parliament “in the near future”, Imbert did not specifically mention outstanding value-added tax (VAT) refunds.

Commenting on this and property tax, Alcazar said, “We must quickly find a permanent solution to the VAT refund issue and ensure taxation is held competitive amongst other initiatives. We are pleased to note that there are no new taxes being imposed at this time.

“However, we are yet to confirm that the model of property tax to be implemented will be one which will continue to support business growth and competitiveness rather than use of a framework which will chase business prospects by imposing taxes on plant and equipment investments.”

Imbert was however congratulated for taking important positive steps towards creating an optimum business environment in which manufacturers can thrive, “therefore driving exports and employment upwards.”

Alcazar cited the recently launched Eximbank Forex (foreign exchange) Facility, through which small and medium-sized manufacturers would be able to access US currency to finance material inputs for their export operations.

The Eximbank’s facility, alongside plans to reintroduce an export allowance, were cited by Alcazar as being geared towards supporting businesses’ stabilisation efforts, so they position themselves to become more competitive.

“This will ultimately lead to export growth which we need for sustainable employment and foreign exchange earnings,” Alcazar told Newsday.