Prominent businesswoman Asha Mirchandani, is weighing in on Government’s proposed two per cent commission on foreign exchange transactions, suggesting that some exceptions should be made.
During a recent interview with The Barbados Advocate, Mirchandani, better known as Mrs. Ram, is contending that implementing the commission on all foreign exchange transactions creates a “grey area” and can put business and individuals alike at a disadvantage.
As such, she believes an in depth review is required as it relates to the proposed commission before July 1, when it is expected to come into effect and the businesswoman has pinpointed some of the areas she is of the opinion should be exempt from the measure. In particular, she is recommending that legitimate business purchases should not be subject to the commission.
“If you are going overseas on a buying trip, when you come back you are going to pay ten per cent for the National Social Responsibility Levy, so that amount of money should be overlooked because you are investing that to bring back goods to pay 17.5 per cent, plus duties, plus ten per cent. What I am saying is that areas that are legitimate should be looked at, it should not be across the board, but instead on certain things,” she maintained.
Mrs. Ram added, “If you are buying luxury goods for yourself, fine... pay the two per cent; if you want to buy a special perfume to suit your skin, pay the two per cent and then there a lot of people are going online and buying goods, and it is only fair the country should get something.”
She is also suggesting that where persons are paying fees to overseas universities or are sending money to their children or spouses studying abroad, they should also be exempt from paying the fee.
“Those are things you have no choice but to do. You had hardship to find the money to educate her; you had a hardship to take your son for a medical test overseas and you have to pay the doctor’s bills, you may find it very hard to pay that and the two per cent on to that is an area the Government should look at,” she maintained.
She added, “Those areas are grey areas when you go across the board. There are certain areas which are fine and I compliment Minister Sinckler on doing it, but there are certain areas they should look at, where the hardship will be heavy.”
On another note, Mrs. Ram is suggesting that any tourist coming into this country should be mandated to change at least US$100 at the ports of entry to help boost the foreign exchange reserves.
“It is done in many parts of the world and then instead of giving a taxi man US dollars, they would be giving them Bajan dollars and that money also remains in the country – so the benefit is two-fold you send US dollars to the Central Bank and they spend the money here because they don’t want to take Bajan dollars away,” she stated.
(JRT)