BASSETERRE, St. Kitts – THE Chamber of Industry and Commerce (CIC) has fired back at Prime Minister Hon. Dr. Denzil Douglas for “inflammatory and irresponsible” comments he made during the 2010 Budget Debate.
Following Douglas’ budget presentation on March 23, the Chamber expressed concern with several elements of the document, most notably the November 2010 deadline for the introduction of Value-Added Tax (VAT).
The Prime Minister responded angrily to the feedback, criticising the private sector organisation for being “biased” and “political” in its report. He accused CIC President Michael Morton of having a close alliance with the opposition People’s Action Movement (PAM), and even suggested that he was working with PAM to remove the government.
Douglas also claimed that the Ministry of Finance had had consultations about VAT with the private sector over the past several years.
The Chamber refused to back down from its stance on VAT in a communiqué circulated Thursday (Apr 1). The group condemned the Prime Minister for his “personal and accusatory” comments towards Morton, and noted he was not the only one who had expressed that concern to Douglas.
“It is rather disconcerting that the comments by the Prime Minister were made purely in response to the president’s concern over the short timelines set for the introduction of VAT – concerns which have also been echoed in the media by members of the public, by other local parliamentarians and leading Guyanese accounting professional, Mr. Harryram Parmesar, who recently co-facilitated an introductory workshop on VAT under the auspices of the local Institute of Chartered Accountants.
It added, “Further, the Premier of Nevis on Friday also raised some concerns in a WINN FM interview about Nevis’ comfort level with the proposed implementation of VAT.”
The communiqué said that, contrary to Douglas’ claims, the Ministry of Finance had never met with the group about VAT prior to its unveiling in last month’s budget.
“At no time within the past three or four years has the Ministry of Finance held any specific consultations with the Chamber about the introduction of VAT. A meeting with the private sector cannot, under any circumstances, be construed to indicate that this meeting was with the Chamber. The Chamber and the private sector are not necessarily synonymous terms and attempts to imply such are absolutely inappropriate.”
Douglas argued during his budget address that VAT, which is a type of sales tax, would enhance the tax reform process, generate increased government revenue and improve fiscal stability. VAT will replace eight existing taxes and an Excise Tax will also be introduced.
A public awareness and education campaign is to be launched at the beginning of this month, and Douglas promised that a Tax Reform Team would hold workshops and seminars for specific interest groups, businesses and individuals.
The VAT legislation is expected to be passed in May before its November implementation.
The Chamber reiterated its commitment to active engagement in the process, and revealed it had already begun its own research on VAT, the Caribbean experience and the likely legal framework.
