According to a government spokesman, reporting on recent decisions within the Cabinet, it was announced that “As part of the series of measures to consolidate the fiscal position of the government, there has been a general review of government’s tax concession policy towards large businesses and foreign direct investment in particular.”
The release, quoting Information Minister, Mr. Nigel Carty, continued by indicating that small fledgling businesses remain a high priority for the government, especially at a time when there are lingering concerns about the stability and strength of the global economy. Carty added by trying to reassure the local corporate community that the small business sector is recognized as having the greatest potential for growth and employment creation.
The Minister explained that with this policy as their guide, the Cabinet of Ministers approved the granting of tax concession on transportation equipment for small local businesses operating in the services sector. The financial assistance to the small businesses concerned will assist in improving quality of service and in serving an expanded clientele, reported the Information Minister.
He said that the Prime Minister and Minister of Finance remarked that the fiscal variables are tending in the right direction and that significant progress has been made through the adoption of a series of measures including the restructuring of the tax system.
Dr. Douglas is said to have identified the present policy of allowing home construction projects a waiver of taxes on the purchases of materials up to EC$400,000 as a significant stimulus measure for our local economy.
Carty said that the Prime Minister also pointed out that our debt-restructuring efforts should yield great benefit in the reduction of the stock of public debt, which stands at 155% of the GDP. Nominal GDP at market prices for 2011 is estimated at $1,915 Million.