Walters: Reconsider VAT, NIS for small businesses during pandemic

DEMOCRATIC Labour Party (DLP) spokesperson for Small Business, Ryan Walters, is calling for government to step in to help the small businesses in Barbados, which he said are dying as a result of COVID-19.

In a statement released yesterday, Walters said these businesses have taken a hard blow from the mandatory closures and safety measures required to slow the spread of the pandemic.

He says this is a time where revenues are at an all-time low or non-existent and governments across the globe have moved hastily to protect small- and medium-sized businesses.

“The DLP wants to know what the government of the day is doing to rescue this important vulnerable sector?”

Walters said it is commendable that commercial banks are able to assist, however micro and small businesses make up less than 20 per cent of a bank’s commercial business.

“So there is a definite need for government intervention to ensure the gap is filled and this group of employers do not go unnoticed. We are again urging government to provide access to loans and grants to allow micro and small businesses to keep employees on the payroll as the country battles the pandemic.

“This BLP administration must make it a priority to lobby all of the utility companies…on behalf of businesses who are being asked to pay the same commercial rates yet they are earning little or no income.”

He also urged government to consider deferring statutory obligations such as Value Added Tax and National Insurance for small- and medium-sized businesses for the next two months.

“As this will help to keep much needed cash within these organisations so that they are able to operate and pay their bills.

“As this will help to keep much needed cash within these organisations so that they are able to operate and pay their bills.”

Walters repeated the call for government to provide moratoriums on business loans issued through Fund Access and to use this government lending institution to offer greater support to its customers as its portfolio is 100 per cent small- and medium- sized businesses.

“We further hope that another government agency, BIDC, will follow the lead of the private sector and provide discounts to their rental tenants during this very challenging business environment.”

Walters, a business executive, stressed that whatever financial support is provided for small business is priceless and will be well worth every cent in the short, medium and long term.

“If their operations are allowed to grind to a halt, so will economic activity and the livelihoods of owners and employees who are worthy citizens and who will not be able to earn an income to provide the basics for themselves and their families.”

He said it is “disturbing” that there has been no substantive position given by the Minister responsible for business and commerce on how government will help micro, small and medium sized businesses navigate these most uncertain and difficult times.

“We are aware that millions has been poured into the Barbados COVID-19 efforts from international institutions, and local and overseas philanthropists. Spare some for the small businesses. They are dying. We are pleading with the government to take action before it is too late,” he exhorted.