TTMA happy Govt heeded advice

THE TT Manufacturers’ Association (TTMA) says government's plan to privatise certain state entities such as gas stations and the port of Port of Spain shows it is listening and responsive to recommendations from the business community.

The association's president Franka Costelloe added in a press release – shortly after Finance Minister Colm Imbert's budget presentation on Monday – that it is cautious on the issue of tax waivers on imported building materials, saying it has to seek clarity on how this will affect  manufacturers of local building material.

But Costelloe said, "We are pleased to see that a number of the issues we have raised with the Government this past year have been addressed. In particular, was the minister's commitment to support TTMA's strategic plan to double exports by 2024/2025."

She said Imbert's focused intention to improve the ease of doing business through the implementation of building an "e-Government" will provide the foundation for transformation that will allow manufacturing to thrive. She was also happy that Imbert stated his intention to track and report on the progress of this digital transformation.

She said government’s announcement of an enhancement to the Junior Stock Exchange, with a five-year tax exemption and 50 per cent reduction in the tax rate for the following five years, mirrors the TTMA’s focus in its Manufacturing Strategy on a business environment that is conducive to entrepreneurship and innovation.

Costelloe also expressed hope that government's focus on the agriculture sector, where Imbert announced a $500 million stimulus package, will provide the local raw materials needed in the manufacturing process, thereby reducing the $4 billiion food import bill and create niche entrepreneurs.

TTMA CEO Dr Ramesh Ramdeen said it also recommended the development of economic free zones and hence welcomed the initiative of the government to transform the existing free zone framework into the specialised economic free zone that will bring value to the business community.

The TTMA has also advocated for a more efficient VAT refund system, consistent with provisions within the law and financial regulations. The TTMA looks forward to implementation of Imbert's intention to provide this through the TT Revenue Authority, it said.

Among TTMA submissions to the Finance Ministry and the Economic Recovery Committee, ahead of the budget were opportunities for small and medium enterprise growth and expansion into the export market, access to foreign exchange, trade facilitation, import substitution, prioritisation of US collars to manufacturers and the renewal of leases and upgrade of industrial parks.

Specific to support for SMEs, the TTMA recommended a renewed allocation of US$100 milliion to manufacturers annually and enhancing capital markets through private equity and exit mechanisms, as well as tax credit to businesses investing in technology and software implementation.

Government has responded by speaking to the further expansion and growth of EXIM Bank geared towards providing enhanced assistance to the business community.

What is now needed to stimulate growth in the export market and boosting domestic demand, Costelloe said, is a focus on trade facilitation.

"This is critical to meeting our strategy of doubling exports in five years", she said. An imperative to securing market growth, she explained, is "the increase in CET rates to the bound rates for goods that can be produced locally and meet a regional demand."