Business chambers: Defer tax until next year

The Chaguanas Chamber of Industry and Commerce, Couva Point Lisas Chamber of Commerce and Penal/ Debe Chamber of Commerce said in a release yesterday they understand Government’s need for increased revenue because of the decline in oil and gas revenues.

Expressing concern on the hasty implementation of the tax, they said they strongly believe that the requirements stipulated on the form cannot be fulfilled before the May 22 deadline.

Apprehensive about the uncertainty regarding the rates, they said, “Government should host a series of consultations to educate the population on the tax implementation process and the assessment of land and property.” While they do not object to the tax, they said Government must acknowledge that small and medium enterprises are barely surviving owing to the rising cost of doing business, and the imposition of other taxes such as business levy, green fund levy, National Insurance Scheme, reduction in the fuel subsidy, unavailability of foreign exchange and value added tax on food items.

To impose the tax at this time, the chambers said, “Would cause unease amongst the population who are already struggling given the downturn in the economy.” They suggested that Government apply an incremental increase over the next three years.

“We believe the tax on plant and machinery is a disincentive to encourage the expansion of production within the manufacturing sector given Government’s need to foster local productivity, reduce the importation of foreign goods and seek export markets as a means of earning foreign exchange.” The chambers said they “would like to see some transparency regarding the allocation of the funds derived from the tax and how it is to be used for development.”