By Steve Thomas Observer Nevis Editor
(Basseterre, St. Kitts) ” The government’s 2009 budget is getting mild approval and raising some concerns in the St. Kitts-Nevis Chamber of Industry and Commerce, according to a press release from the group. The organization is pleased the budget does not include an array of new taxes, but sees some proposals, such as fee increases and possible unemployment insurance, as matters that will require further attention. “The St. Kitts-Nevis Chamber of Industry and Commerce is heartened by the fact that Government’s 2009 Budget is ‘tax free” and does not appear to include any increases in existing taxes and levies,” the group stated in a release.” “The ‘tax-free” nature of Government’s 2009 Budget is considered as a sensible move by the Chamber, especially given the overwhelming evidence that some of the world’s major economies such as the United States of America, and some European countries are facing serious financial challenges which are expected to prolong well into the next 12 months.” Moreover, some of the larger corporations in these developed countries are being given government bailouts in order to survive. The Chamber is also encouraged by Government’s realization that our economic future rests, in large measure, on the development of our private sector which must be given as favourable an environment in which to thrive and succeed if this Country is to enjoy the spoils of development.” However -” “A number of changes have been noted in the 2009 Budget by the Chamber, for which the organisation intends to seek clarification,” the release states. “Some of these include the possible introduction of unemployment insurance, “billable services” in Customs, and promised increases in (a) the cost of certain Government fees for services; and (b) pensions paid by Social Security.” The level of these fee increases, and the sourcing of funds for the increased Social Security pensions and the unemployment insurance scheme are issues which the private sector body intends to raise with Government at the earliest opportunity.” The Chamber also intends to seek clarification of those tax reform measures which have been proposed.” The Chamber’s statement also looks toward the possibility of the imposition of a value added tax and lays out some conditions the group feels should be followed if such a tax is announced: “The private sector organisation also trusts that Government will keep its word relative to refraining from the introduction of a Value Added Tax only after proper fiscal analysis, and wide-scale public education and consultation.” The Chamber also hopes that when this tax is actually implemented it would have replaced a number of other taxes that are currently on the books in order to prevent double taxation.” It is to be noted that the effective tax rate exceeds the statutory rate of 35%, especially since companies are still taxed on their capital assets.” One area the Chamber praises the government for is its funding allocation for national security. As the number of some serious crimes has risen this year, many in the business community fear a pullback by potential investors from the Federation. “The budgetary allocation for the Ministry of National Security is also of importance to the Chamber, given our National struggles with rising crime, including our homicides which now stand at 23 for the year 2008 in a population of not more than 50,000 persons.” The Chamber notes that the sum of EC$48.7 million has been allocated to the Ministry for 2009, reflecting an increase of just over EC$9 million from the previous year.” The Chamber is of the view that these funds are well-needed if our Police Force is to execute its mandate to protect and serve the people of St. Kitts and Nevis with the aid of proper training, leadership, technology and equipment necessary to prevent crime and bring criminals to justice.” It would be tantamount to an exercise in futility if our security forces are expected to fight crime with 20th century tools, skills and technology when criminals are outfitted with high tech, 21st century arsenals,” according to the Chamber’s statement.
