THE Small Business Association is calling for a repeal of the widely debated National Social Responsibility Levy (NSRL), but if it is here to stay, the association is asking for clarity.
This was the word coming from President of the Barbados Small Business Association (SBA), Dean Straker, at a press conference held yesterday at the SBA headquarters in Harbour Road.
Straker contended, “We need clarity without further delay; set it out specifically that there is no grey areas.
“The Small Business Association is cognisant of the economic situation facing Barbados today and we fully accept revenue streams are urgently required. At the same time, the views of our membership have to be represented and by extension our concerns have to be given to the Government of Barbados and the general public.”
According to him, “The SBA is calling for a clear definition from the Barbados Revenue Authority (BRA) before any NSRL taxes are paid over to the Authority. The SBA already sees this NSRL as an unfair tax imposed on manufacturers. It is disturbing that the members of Government could agree to a NSRL tax on manufacturers that are already struggling to survive and compete against imports. The questions being asked, ‘Do they want to kill manufacturing?’ ‘Has manufacturing not declined in the last two decades?’ ‘How can any Government see the wisdom in signalling out manufacturers from all of the businesses in Barbados and mandating them to charge consumers this additional ten per cent on locally-made products?’ These are the same manufacturers that are still employing staff, paying NIS and contributing to the future of Barbadian families and do Barbadians really understand that manufacturers must now add ten per cent in rent, NIS, wages, etc, to every item the consumer now goes to purchase.
“It is now back-to-school season and Bajans will have to pay NSRL on every school pants and shirt made in Barbados, amongst many other things.”
He noted, “I understand hoteliers are exempt from NSRL… hotels already have duty-free concession on most items. This is not an attack on the hotel industry, but manufacturing is an industry too and it is ridiculous that this industry should be treated differently from any other entity.
“Therefore what this means is that as the sales decline on locally manufactured items, staff will be sent home, etc. It is my belief that if this tax remains, that this is the surest and quickest way to wipe out the workers and the businesses in the manufacturing industry.”
The President contended, “There is ambiguity and confusion when it comes to the NSRL tax. In an effort to guide and inform our members accurately, the SBA is requesting the Minister of Finance and BRA to clearly describe how production cost for the purpose of calculating NSRL should be determined. It is not good enough to say to our respective accountant should advise us which has been uttered by the BRA.
“The accountants I have spoken to have indicated that although general accounting practices may dictate what constitutes a company production cost, attributable headings may also be subject to some interpretation and consideration. So if it is left to individual manufacturing businesses to form their own interpretation, I’m afraid that in an effort to protect the consumers in Barbados and remain competitive against import, certain companies may incorrectly calculate their production cost. If the industry does not receive this clarification, it exposes us to potential financial loss, if the BRA conducts an audit after the fact and then determines that manufacturers have not calculated the NSRL in accordance with their expectation. This result can be the most unjust atrocity ever committed on the small manufacturers in this country.” (NB)