Chaguanas chamber: Address taxes, crime, investment in mid-year review

THE Chaguanas Chamber of Industry and Commerce (CCIC) says it would like Finance Minister Colm Imbert to address issues related to taxes, crime and investment when he presents the mid-year review of the 2023/2024 budget.

When the House adjourned on May 24, Leader of Government Business Camille Robinson-Regis announced that the Standing Finance Committee will meet at the Red House, Port of Spain on June 3 from 1.30 pm.

Asked on May 26 whether this meeting was due to the mid-year review being presented at its next sitting on June 7, Robinson-Regis confirmed this was the date of the review.

The committee's meeting will be to approve a $2.3 billion supplementation to the budget.

Among the major supplementations the committee will consider are $570,900,000; $155,677,500; $527, 800,000; $495, 286, 000 and $144,200,000 for the Energy, Works and Transport, Public Utilities, Health and Education ministries respectively.

It will also consider a $50 million increase in funding for the Tobago House of Assembly (THA).

This $2.3 billion is expected to be approved on June 7.

In a statement on May 27, the CCIC hoped that taxes, crime and investment will dealt with.

The CCIC said government must ensure fairness in the tax system.

"Businesses that are compliant and pay their fair share of taxes deserve timely VAT (Value Added Tax) refunds. Delaying these refunds undermines trust and can strain the cash flow of businesses, particularly small and medium-sized enterprises (SMEs)."

The CCIC urged government to prioritise processing VAT refunds promptly.

"Implementing a system where VAT refunds are processed within a stipulated timeframe, say 90 days, can improve the business climate and encourage compliance.

"Allowing businesses to offset outstanding taxes with VAT refunds could streamline tax administration and reduce bureaucratic delays. This would not only ease the financial burden on businesses but also improve the efficiency of tax collection."

On crime, the CCIC called on government to take a strong stance against extortion and crime affecting businesses.

"This involves enhancing law enforcement capabilities, improving intelligence operations and fostering better community-police relationships. Implementing robust anti-extortion measures, such as specialised task forces and hotlines for reporting extortion attempts, can help protect businesses."

The CCIC suggested public awareness campaign on the legal recourse available to businesses facing such situations can empower the victims of extortion.

"High levels of crime and extortion significantly impede efforts to diversify the economy. Businesses are less likely to invest in non-energy sectors if they perceive high risks due to crime."

The CCIC warned that such a scenario can result in capital flight, with business people taking funds which could have been used for domestic investment and moving them overseas for safety.

"Persistent crime deters both local and foreign investment, slowing down diversification and making the economy overly dependent on the energy sector. This can lead to economic instability, especially when energy prices are volatile."

The CCIC also said government should make a comprehensive statement to the population about how to deal with criminals in tactical uniforms, masquerading as police officers.

On investments, the CCIC called on government to give the population regular updates on the progress on initiatives such as the Dragon gas project in Venezuela.

It said this is important to maintain investor confidence and plan alternative strategies could prolonged delays arise.

"Delays or complications in these projects can impact energy revenues and economic stability."

The CCIC acknowledged that with the general election constitutionally due next year, there is a possibility that the mid-year review could focus on populist measures that could win voter support for government ahead of that election.

Even if this is the case on June 7, the CCIC hoped such measures would be "balanced with long-term economic policy considerations."