The T&T Chamber of Industry and Commerce says fiscal progress must now translate into business growth.
In a statement, it welcomes the progress outlined in the Mid-Year Budget Review, saying it presents one of the “strongest fiscal signals in recent years.”
It says revenue outperformed budget expectations, expenditure remained below projections, the fiscal deficit narrowed.
Together with the upward revision in energy price assumptions, the Chamber believes these developments demonstrate a more stable fiscal outlook and provide the Government with greater capacity to advance its economic agenda.
It adds however that macroeconomic stability is not an end in itself, saying “Its value lies in creating the conditions for businesses to invest, expand, employ more people and compete successfully at home and abroad.”
According to the Chamber, many businesses continue to face significant operational constraints such as access to foreign exchange, prolonged VAT refund delays, liquidity shortages, crime, regulatory bottlenecks and lengthy approval processes that inhibit investment, limit expansion and reduce competitiveness.
“While confidence in the economy is improving, businesses must also experience meaningful improvements in the day-to-day operating environment,” says the Chamber.
It believes improving private sector liquidity should be an immediate priority and continues to advocate for a structured and transparent programme to eliminate the VAT refund backlog through clear repayment schedules, prioritisation of SMEs and businesses experiencing cash flow constraints, and practical mechanisms that allow approved VAT refunds to be offset against other tax obligations where appropriate.
With regard to forex, it says greater transparency, efficiency and access within the foreign exchange system will be critical to improving business confidence and export competitiveness.
