AmCham wants detailed plan in 2017 Budget

This as AmCham, on Monday, expressed appreciation for Government’s “incremental attempts to curtail spending while balancing economic growth and social stability, in the context of a drastic fall in energy prices.” However, Am- Cham said “Government should engage in revenue-generating measures and pursue aggressive structural reform geared towards cost-cutting and operational efficiency.” In addition to its recommendations on the “budgeted” prices for oil and gas, AmCham said that in the current price environment, the Supplemental Petroleum Tax “being applicable at prices of US$50 a barrel and higher is not appropriate.” AmCham also called for a review of the margins afforded to petroleum dealers, peddlers, and retailers. It said that “in the context of a heavily price-regulated industry where pricing structures have been stagnant for over a decade, the Government should consider the margins afforded to petroleum dealers, peddlers and retailers and the implementation of a mechanism to calculate these margins based on the local environment.” AmCham said these measures, plus others aimed at increasing accountability, transparency and efficiency “for a more favourable business environment”, should be part of a “detailed action plan” for the new fiscal year.

Regarding the need for increased accountability and efficiency, the business association is urging Government to rationalise expenditure across all areas of Government spending and to operationalise procurement legislation “to further this objective.” Prioritisation of Value Added Tax (VAT) refunds and the correction of “inefficiencies in the administration of VAT, which would allow for more efficient collection and refunds,” was another of AmCham’s seven recommendations on this issue. The others include improving the effectiveness and efficiency of tax administration, such as the approval process for exemption on severance payments and a timeline for implementation of the Revenue Authority.

AmCham also wants Government to promote investor facilitation by fast-tracking projects over $250 million and/or the creation of 50-plus permanent jobs and, among others, prioritisation of transfer pricing legislation.

“As we continue to look at international best practice with a focus on international trade and attracting foreign investment, transfer pricing regulation becomes increasingly important.

These taxation rules will also affect BIR (Board of Inland Revenue) efficiency and efficacy, along with the implementation of a Revenue Authority.” AmCham then expressed concern about the overall quantity of public debt and the absolute size of the obligations that the country can comfortably service in years to come.

The association said it believes “there must be some urgency in articulating a plan of public debt management, as the ballooning of government to government financing arrangements, the overdraft utilisation at the Central Bank of Trinidad and Tobago over the last several years and the apparent absence of these numbers from our external debt position are alarming.”