Tobago Chamber to Gov't: Make Tobago VAT-free zone

Tobago Business Chamber chairman Martin George -
Tobago Business Chamber chairman Martin George -

The Tobago Business Chamber is hoping Finance Minister Colm Imbert will announce plans to make Tobago a VAT-free zone in the October 5 budget.

Chamber head Martin George gave the chamber’s wish list in a WhatsApp voice note on Tuesday.

He said the chamber had floated the idea some time ago and it was not impossible.

“You have places like Panama, where they have declared a duty-free zone. So it is quite possible to achieve this, and we think that that will also help to stimulate greater investment in Tobago.”

He added: “You will have many more Tobagonians wanting to come across to Tobago and retire, because if they know that Tobago is a VAT-free zone, it means their cost-of-living expenses will be tremendously reduced, so there is a greater incentive in that regard.

“And with that, you then start developing your health care systems in Tobago. So therefore, once people are retired, and they know they have proper healthcare on the island, Tobago will be paradise for retirees.”

Saying the chamber is eagerly anticipating the presentation, George repeated its call for the “complete and unconditional removal” of the foreign investment legislation, which, he believes, has “crippled and stifled all forms of direct foreign investment into Tobago.

“So we need to see that legislation totally repealed. We just need to get rid of it. It has been the greatest albatross around the neck of Tobago in terms of crippling and stifling direct foreign investment.”

George said the chamber is also hoping to hear an announcement of measures to allow for a mandatory minimum of ten per cent local contractor input on all major infrastructural projects.

“We don’t just want local labour input. We don’t want you just hiring labourers and craftsmen. We want you to hire contractors in the mega-projects in Tobago. Hire them as sub-contractors so that they can get a chance to learn the skillset and there would be that knowledge exchange in terms of them developing their skills to be eventually take on bigger and bigger projects.”

He said the knowledge transfer would trickle down to the workforce.

George is also hoping to hear of measures to speed up the distribution of relief grants to those affected by the covid19 restrictions in Tobago.

“This would ensure that, at every level, everyone who has applied, even for the salary relief grants, staff members who have applied for that, that they would get this expedited and actually receive the grants in hand.”

Some hoteliers and guesthouse operators have begun receiving money from the Government’s $50 million grant facility.

Tobago Tourism Agency Ltd’s director of tourism product development and destination marketing Narendra Ramgulam said three businesses – Bananaquit, Villa Indra and Mike’s Holiday Resort – have received $300,000 each.

The grants are intended to help hoteliers upgrade their establishments in order to boost the island’s tourism sector, post-covid19.

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"Tobago Chamber to Gov’t: Make Tobago VAT-free zone"

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