NSRL challenge

There is concern that the increase in the rate charged for the National Social Responsibility Levy (NSRL) will have negative implications for the International Business sector.

Speaking during the opening of a seminar hosted by the Barbados International Business Association (BIBA), yesterday at the Savannah Beach Hotel, under the theme ‘What Businesses Need to Know about Base Erosion and Profit Shifting (BEPS) and Double Taxation Agreements (DTAs)’, President of BIBA Marlon Waldron lamented that the levy, which moved from two to 10 per cent two months ago, is going to result in companies, seeking to set up operations here, having to spend more money to do so.

“It is going to be more difficult for us to explain to companies coming to Barbados to set up office, importing furniture and fittings, why they have to pay this levy on their imports; and given that section 20 of the IBC [International Business Companies] Act states that they are exempt from all imposts on imports for the operation of their businesses,” he said.

Waldron is adamant that this “level of inconsistency” that exists must be avoided when dealing with international investors. He made the point as he warned that it breaches the “expectation of certainty” those businesses expect and adds yet another irritant to doing business in this country. The BIBA president raised the issue as he lamented about the challenges presented when trying to do business in Barbados.

Touching on the country’s foreign exchange reserves position, which at the end of June was said to be 9.7 weeks of import cover, the BIBA president said this is very worrying. He added while it has been suggested that to improve this, the economy needs to grow and international business needs to make a greater contribution to the economy, the latter cannot occur without a “real initiative” by Government to address the ease of doing business. He charged that the impediments to business are holding the sector back, and as such, he maintained that no efforts should be spared in placing resources behind such an initiative.

“Despite the drop in corporate tax collection and the difficulties faced doing business here, this sector remains a main revenue and net foreign exchange earner for Barbados, as we continue to see companies setting up here and making their contribution at an average of about 400 entities per year,” he said.

To that end, he contended that there is no doubt that the International Business sector is holding its own and must keep pressing on. (JRT)