BASSETERRE, St. Kitts – CHIEF on the list of complaints that the Nevis branch of the Chamber of Industry and Commerce (CIC) has forwarded for the decline in that island’s economy is the Sugar Industry Diversification Foundation’s (SIDF) lack of transparency in the investments of its funds.
In his presentation during this week’s National Consultation on the Economy (NCoE) at the Royal St. Kitts Marriott, President of the CIC – David Lake – highlighted concerns on behalf of his Nevis colleagues, which they believe are having a negative impact on Nevis’ economy.
According to that report, the Nevis CIC branch declared that what was particularly concerning is that the SIDF funds “are not being adequately invested in Nevis despite the sale of a federal asset”.
During the same sitting however, Financial Secretary to the Nevis Island Administration (NIA) Laurie Lawrence declared that Nevis was cash-strapped and would be looking to the SIDF to assist in boosting the island’s resource base. He indicated that revenue on the island was on the decline and that an “injection of resources” is desperately needed.
A further complaint is that the processing of economic citizenship is often delayed as there are “no clear timelines…and it is noted that persons who are willing to pay an extra fee may have their application expedited”.
It suggested that electoral practices within the Federation have been a source of “continued controversy” which in turn has an unwanted impact on Nevis’ economic climate. And the Nevis CIC has suggested that it is necessary for a complete review of the nation’s electoral practices be conducted.
Notwithstanding some have touted that VAT has proven to be an excellent source of revenue generation, the Nevis branch of the CIC says it gives an unfair advantage to foreign developers. The body also informed that VAT regulations put additional strain on some hoteliers.
“VAT exemptions are only provided to developers who are designated a special developer. However, most local developers are not so designated and persons are therefore importing building materials from overseas and claiming the VAT exemptions. This is having a negative impact on the local importers.
“VAT Calculation on the hospitality industry – VAT input expires after one month and therefore a number of hoteliers are unable to reclaim the input VAT because input VAT is not carried over to another month.”
The Federal Government has been called upon to consider introducing “Usury” legislation to guard against the extremely high interest rates which are being charged by quick-lending institutions.
“High interest rates are charged by quick lending Institutions. Interest Rates are as much as 45% are being charged. It is opportune to consider the introduction of legislation to address what is commonly referred to as Usury. We have to examine carefully the impact of high finance cost on the general population and the apparent increasing levels of private consumer based debt.”
The economic climate has on Nevis has also been affected by the increase in crime – the CIC in Nevis has indicated – adding that “this is beginning to affect the confidence of potential investors”.
