Bitter, sweet budget for Private Sector Commission

Nov 28, 2018 News

While commending Minister of Finance Winston Jordan on yet another early budget, the Private Sector Commission has noted that it makes no provision for relief on energy costs which are “stifling businesses.” It says that also worrying is the impact of Budget 2019 upon the foreign reserves of the Central Bank.
In a missive to the press, the Private Sector Commission said, “An impact that does not appear to have taken cognizance of the need to cushion against external shocks to which the country and its currency are vulnerable.”
According to the Commission, it was in consultation with the Finance Minister as the Budget was being crafted, and made a number of recommendations. Chief among which was the gradual lowering of the Corporate Tax rate over a period of ten years to 20%. The Commission said that it is pleased at the reduction to 25% which was announced for 2019. It signals a commitment to this mutual goal.
“We are happy, too, that Budget 2019 contains several measures such as the raising of the tax threshold, which the Commission had proposed for the relief of the tax burden upon employees, and the monies earmarked for hinterland airstrips. Also gratifying is the provision for the differently able, a demographic which is often neglected.”
“The Commission is cognisant of the need to incentivise the manufacturing sector but would have hoped that, given the substantial contribution of the services sector to our Gross Domestic Product, consideration would have been given to reducing the tax rate for commercial businesses from the draconian 40% as this is having an adverse effect on legitimate businesses,” the statement added.
Nevertheless, it expressed that it is also pleased that plans have been announced for the construction of the Linden-Lethem road which will ease the woes of businesses and residents who depend on this corridor for their livelihood.
“The dire need for the East Bank road, which had been proposed by the Commission, has also been addressed and the Commission is heartened that the development of modern Port Georgetown is being addressed,” the Commission said.
It is concerned about the level of proposed overall tax revenue on businesses and individuals as Budget 2019 projects a 9.9% increase in revenue while the economy is projected to grow by 4.6%.

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