Budget Debate has business community waiting to exhale
Published:Wednesday | April 17, 2013 | 12:00 AM
Gary Spaulding, Senior Gleaner Writer
THE TOP brass of the business and industrial sectors already appear to be feeling "less taxed" in anticipation of tomorrow's opening of the 2013-2014 Budget Debate in the House of Representatives by Minister of Finance, Planning and the Public Service Dr Peter Phillips.
With an International Monetary Fund (IMF) agreement appearing to be a foregone conclusion, previously nervous business leaders are admitting that they are "waiting to exhale".
The business community has expressed cautious optimism that the two most strategically placed political leaders in the country - Prime Minister Portia Simpson Miller and Phillips - are seized with the need to operate "outside the box" to propel the much-needed 'Growth Agenda'.
"Based on the posture, I believe that the prime minister and the minister of finance understand and are supportive of the need to do this," said Chris Zacca, president of the Private Sector Organisation of Jamaica. "And they are the two most critical people in this process."
But while Zacca appeared to be satisfied that Simpson Miller and Phillips appreciate the realities of the day, he expressed reservations about whether the current government structures and systems would facilitate the required changes without a significantly transformational approach.
"I don't think (they) do, and a revolution and transformation is going to take extreme outside-the-box thinking by our political leadership," he said.
Zacca stressed that creativity must be the order of the day and he explained why.
"We don't think there is any room for any more taxes, that is the first thing. What we would really like to hear is what the Government is going to do differently to encourage a business-friendly environment, to create a platform for economic growth on the foundation of the IMF's fiscal tightening agreement."
Zacca's sentiments were echoed by Brian Pengelley, the president of the Jamaica Manufacturers' Association (JMA). "I am expecting to hear how we are going to grow the economy, I am looking for some policies that will help encourage growth ... . I expect some taxation, but minimal taxation if necessary, that is applied to in a manner that will encourage growth in the economy."
The expressions of both men received support of Audley Shaw, opposition spokesman on finance.
"The assumption is that given the recent tax package, this will hold in terms of providing the revenues that are needed and the assumption is there should not be a gap," said Shaw. "But we really won't know the final position until the minister presents the revenues and then to see whether he has a gap or not and how he intends to fill it."
Zacca said Phillips and Simpson Miller need to enunciate how spending will be prioritised in a way that demonstrates to the business community that the Government is serious about changing the business environment and changing the facilitatory processes to create an investment-friendly climate.