Speaking in interviews this week, presidents of the San Fernando, Penal/Debe and Couva/Point Lisas chambers of commerce indicated the increase in fuel costs could potentially result in inflation that would inevitably affect “the small man on the street”.
“The Trinidad and Tobago inflation rate—while it is comparatively low—is reaching unattainable levels for the small man on the street because it is affecting purchasing power, and with the unfortunate increases you would see resulting from utilities, fuel costs, fuel tax and impending property tax, which we have all indications will be coming on stream soon,” president of the Greater San Fernando Area Chamber of Commerce Kiran Singh said yesterday.
Singh, however, said the chamber welcomed the many initiatives mentioned by the minister that would benefit Small and Medium Enterprises (SMEs) across the country, including increased investment, tax amnesties, easing of forex restrictions and alternative energy investment,
“The Minister of Finance has sent the right economic signals to the business community and the international business and investor communities to show that Trinidad and Tobago appears on solid footing. It is right for foreign direct investment, and even for regional and large institutional investors and companies who would want to see Trinidad and Tobago’s economy as one for investment.
“Of course we welcome the news that SMEs have been given greater significance in this year’s budget with the announcement of tax breaks, implementation of systematic changes in the renewal of ID cards, permits and for first-time persons to get these documents, the simple economic and trading principles, cashless transactions that the Ministry of Trade is spearheading, the E-Governance that we wish to see through digitisation of the economy is welcome news to us,” he said.
Referring to the $500 million Long-Term Loan Guarantee Scheme for SMEs introduced by Imbert, Singh said it is “a welcome economic stimulus for us in the SME sector… that will assist us in the long term in providing cash flow, business development in the sector. The tax amnesty announced will benefit us as well, we need that grace period to be able to pay our taxes in a legal and timely manner”.
Property tax untimely
President of the Couva/Point Lisas Chamber Mukesh Ramsingh yesterday said though the increase in fuel prices was expected, some had hoped it would not materialise.
“We were hoping not to get an increase in fuel prices, but it was expected. We know it will contribute to inflation and will have a cascading effect—a lot of things will go up in price. Based on how the minister explained the need for it, we understand that the subsidy cut was probably inevitable. However, we expect the base oil price to cross the threshold and we may get another increase,” he said.
Ramsingh said he hopes the fuel subsidy reduction would indeed be used for development and social programmes as indicated by Imbert. However, he said, the property tax was not a welcome measure at this time.
“We are always hoping that the property tax would have taken longer to come on stream; or if it comes at the time, he is proposing that the payments are a little less. It will put more strain on the citizens,” he said.
Ramsingh said loans and tax exemptions were a great tool in helping small and medium businesses recover from the Covid-19 pandemic.
Motilal Ramsingh, Penal/Debe Chamber of Commerce president, yesterday said the majority of businesses within the region were considered micro-businesses. He said there was a need for further definition of what constituted an SME.
However, he said the raised costs of fuel would inevitably decrease the disposable income of persons in rural communities who may, as a result, frequent these micro-businesses much less.