CHAIRMAN of the Barbados Private Sector Association (BPSA), Charles Herbert says that they are encouraged by the discussions the BPSA held yesterday with Government on the Budget and the Budgetary proposals.
The meeting, which lasted for about two hours, was held with Minister of Finance and Economic Affairs, Christopher Sinckler, at Government Headquarters.
Herbert told the Barbados Advocate that during the meetings the Minister informed the private sector representatives that Government is considering some modifications to the National Social Responsibility Levy (NRSL), which would help the most vulnerable in society. However, details on this are to be approved by the Cabinet.
“We are encouraged by that,” Herbert said. He also pointed out that the Minister clarified the rules relating to the two per cent commission on the sale of foreign exchange, noting that guidelines were to be issued by the Central Bank of Barbados.
“In particular they would clarify the commission on the net foreign exchange purchases and not on the gross,” the BPSA Chairman said. Herbert remarked that this was a key concern for the International Business and Financial Services Sector.
“He also clarified for the manufacturers that it would be applied to the cost of production and not the sale cost, and that was the principal concern for manufacturers,” the BPSA Chairman explained.
The meeting was called to discuss some of the pressing issues contained in the May 30th Budget and Budgetary proposals, presented by Mr. Sinckler.
Two of the more controversial policies in that Budget were the increase in the National Social Responsibility Levy from two per cent to ten per cent, and the Commission on the sale of foreign exchange.
There is widespread belief that in their present form, both the NSRL and the commission will cause an increase in the cost of living and the cost of doing business in Barbados. Some businesses feared that the NSRL could cripple their operations while the commission will affect the operations in the International Business and Financial Services sector.
The measures are to take effect from July 1, this year.
“I think the biggest takeaway we have from the meeting is that he [Sinckler] has confirmed that these taxes are short-term measures and he is committed to serious dialogue with the Social Partnership in the continuing to develop and to finalise medium term strategies,” according to him.
“To use his [the Minister’s] words, we won’t be meeting weekly, we will be meeting daily,” Herbert said.
He added that they are “very encouraged by this serious commitment to dialogue on medium term strategies and to the fact that they will replace these short term strategies which we think will have some problems.” (JB)