‘reduce tax rates’

Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, has outlined some of the areas he think should be addressed in the upcoming Financial Statement and Budgetary Proposals, and among
them he is suggesting that the tax rates should be reduced.

Speaking at the Annual General Meeting of the General Insurance Association of Barbados (GIAB) at the Radisson Aquatica yesterday morning, Inniss said he has not seen the proposals which are expected to be presented to the country by Finance and Economic Affairs Minister, Christopher Sinckler next month, but he said he has given his Cabinet colleague and Prime Minister the Rt. Hon Freundel Stuart, his “candid opinion” on areas that should receive focus to “quickly resuscitate” the economy and get it growing again.

“For me a right sizing of the State apparatus; frontal decisions on some of these State agencies that we have in Barbados; downward adjustment of tax rates; a laser like focus on foreign exchange earning areas ; and enhanced business efficiencies ought to be among some of the top areas for solutions going forward,” he told the gathering of insurance executives.

Turning his attention to concerns by the insurance industry about the safety of investing in Government paper, the Industry and Commerce Minister, maintaining that Government has never defaulted on any debt payment, made a call for more utilisation of the investment vehicles and opportunities presented through Government paper, including bonds, debentures and stocks.

He said over the last five years domestic banks have been at the forefront of purchasing Government debt and have now reached a saturation point, and he said it is an opportunity for high liquidity based operations such as insurance entities to come on board. Inniss in fact contended that Government paper remains the better instrument for investment for the insurance industry, but he is cognisant that the industry requires a level of confidence to continue to engage in such investments.

“I wish to say to you ladies and gentlemen, you would have your concerns naturally, but I say to you, the Government of Barbados has never, never ever defaulted on any its debt payments and that is very important… and that is a record we intend to keep,” he maintained.

Minister Inniss added, “So as such you can have the utmost confidence that as a Government, our policy prescriptions would not be injurious to the insurance sector or place you in any great peril. But I want to say here that confidence is a two-way street, based on mutual trust. It is also an emotion which can predicate an action and your actions therefore would engender confidence not only in the economy, but more profoundly in Barbados itself.”

He made the point as he went on to reveal that treasury bills here in Barbados were giving more than a three-per cent yield, which he said is much more than in some developed country jurisdictions. (JRT)