Lobby groups’ budget hope: More benefits for small businesses

News Andrew Gioannetti 26 Minutes Ago

Government is being called on to nurture and develop non-energy industries including agriculture as a means of moving TT away from dependence on dwindling natural energy resources as the chief revenue earner. - File Photo by Roger Jacob

EACH YEAR, business chambers and other lobby groups present the Ministry of Finance with their wishlists for the national budget.

They usually include unanimous calls for infrastructural development, tax reforms and other costly undertakings, funded primarily from national oil and gas revenues.

Ahead of the September 30 2025 budget presentation, almost all groups have lobbied for the government to invest in skills training, digital transformation and incentives for small businesses to help diversify the economy, especially with energy revenues declining drastically.

The chambers have requested significant national security boosts to improve the quality of life in TT and to attract foreign and even local investors.

Economist Marlene Attz, speaking at the TT Coalition of Services Industries’ (TTCSI) pre-budget discussion at the Little Carib Theatre, Woodbrook, on September 18, said by the Minister of Finance’s admission, the country is in for troubling times.

UWI economist Dr Marlene Attz.- File Photo

“Because of the challenges and the low economic growth, we’re going to realise as a result of the contractions in the energy sector, something has to compensate," said Attz.

“We now have one of the largest budgets (following the mid-year review) and a $9 billion deficit, meaning the government spent $9 billion more than they actually earned…If there’s a decline in the energy sector, something else has to fill that gap, which is why it’s important to us to organise spaces like the services sector.

“This is serious business.”

The TTCSI, the leading association of service providers in TT, was one of several groups to share their recommendations with the Finance Ministry in recent days and weeks.

TTCSI president Dianne Joseph shared the TTCSI’s budget wishlist.

She noted the significant role the services sector – a major contributor to the gross domestic product – can have as a foreign-exchange earner.

ESTABLISH DEDICATED SERVICES TASK FORCE

Joseph announced that the TTCSI has asked the government to establish a dedicated services task force.

“This task force will be instrumental in developing industry standards, implementing certification programmes, and advising the government on regulation and accreditation processes related to the services sector.

“We also acknowledge the significant role the services sector can play in national economic diversification through its expert potential,” Joseph said, leading to the TTCSI’s second request: an export booster programme, specifically for services, as well as creating centres of excellence for innovation.

Joseph said these initiatives would provide targeted support for service providers aiming to expand into international markets, “while fostering innovation and entrepreneurship.

“As the only and duly recognised legitimate umbrella organisation representing and uniting all service-sector associations in TT, the TTCSI sees itself as the central hub for advocating the services sector. I can tell you, we do that very well."

TTCSI’s third request was funding to support critical initiatives, including research and advocacy, capacity-building and industry networks.

Joseph said the TTCSI is actively advocating for measures to encourage service providers to embrace technology in today’s rapidly advancing digital age.

“This includes promoting digital transformation, enhancing cyber security awareness and support, and advancing the development of e-commerce and (an) online service platform,” she said on the coalition’s fourth recommendation.

Finally, “and arguably most important item on our list,” Joseph said, is establishing a strong services brand for TT.

“Even if we excel in many areas, we may never reach our full potential if the world is not where we (want) to be. We need to take our services outside and (show the world) what we have to offer.

“Therefore, the TTCSI re-emphasises the importance of developing a national services brand strategy and implementing targeted marketing and promotional efforts for the services sectors poised for exports.”

TT Contractors Association (TTCA) Glenn Mahabirsingh shared eight recommendations with Newsday on behalf of hismembership.

Mahabir said construction accounts for about five-six per cent of TT’s gross domestic product and is crucial in stimulating the economy.

“It is a significant source of employment, engaging both skilled and unskilled workers, and generates demand for goods and services from various sectors.

“The industry plays a crucial and commendable role in infrastructure development, encompassing the construction of essential elements such as roads, bridges, airports and public buildings, which enhances the country's competitiveness and attracts foreign investment,” Mahabirsingh said, adding that the sector supports the energy industry by constructing and maintaining oil and gas facilities and pipelines.

“Moreover, the construction of tourism-related facilities such as hotels and resorts contributes to the growth of TT's tourism industry, which is essential for foreign-exchange earnings and employment.”

PAY LOCAL CONTRACTORS

The TTCA has lobbied for measures it believes will stimulate the local industry, beginning with prioritising local contractors.

“Implement policies favouring competent local contractors in government projects to stimulate the local economy and create jobs,” the TTCA suggested.

It called for timely payment to contractors.

“It is crucial to establish a streamlined payment process to ensure that contractors receive timely compensation for their work.”

He said this would enhance cash flow and project completion rates, and make the sector more reliable.

The association also ants improved access to foreign exchange.

“Facilitate the availability of foreign exchange for contractors to ensure they can procure necessary materials without delays, crucial for maintaining project timelines,” it requested.

It also called for funds to be allocated specifically for maintaining and rehabilitating existing public infrastructure to improve safety and functionality.

The TTCA also lobbied for youth training programmes.

“Further invest in training programmes that equip young people with essential construction craft skills such as plumbing, carpentry, electrical work, and masonry, fostering a skilled workforce,” it wrote.

On licensing and building codes, the TTCA wants enforced “contractor licensing requirements and ensure adherence to local building codes to maintain high construction quality and safety standards.”

It has called for home-improvement incentives to allow homeowners to improve their properties and build new homes, stimulating economic activity and enhancing living conditions.

Finally, it addressed solutions for traffic, asking the government to “develop comprehensive strategies to manage and reduce traffic congestion, such as improving public transport, enhancing road infrastructure and implementing smart traffic-management systems.”

Mahabirsingh said by addressing these areas in the budget, TT can strengthen its construction sector, promote economic growth and significantly improve its citizens' overall quality of life. “These recommendations have the potential to create a more robust economy and enhance the living conditions of our citizens, instilling a sense of optimism for the future.”

Couva/Point Lisas Chamber of Commerce president Deoraj Mahase recommended, among many other things, the full implementation of the TT Revenue Authority, “with effective legislative adjustments and laws to operate.”

That has begun, after the Privy Council’s decision on September 16 to dismiss the Public Services Association’s appeal challenging the constitutionality of the TTRA Act. The ruling gave the TTRA the green light to operate.

The chamber called for a review and adjustment of the Customs Act; an effective price-control body and review of the laws on price monitoring and control; and further development of the maritime sector specific to and focused on trade and port operations, and “not just the marine sector.”

IMPROVE NATL SECURITY

On property tax, the chamber wants to ensure regional corporations get the relevant funds collected to address issues in their areas with proper accountability.

It addressed national security. It wants the appropriate technology, training, compensation and legislative changes to be implemented in the police; a national DNA and functional fingerprint database for all citizens; and a fully functional national CCTV system with a state-of-the-art response mechanism; significant improvements in the infrastructure, including vehicles; and an effective fleet-management system with accountability.

The chamber asked for small and medium-sized enterprises to benefit from decreased tax rates, a tax tier separate from large businesses, and a 150 per cent-deductible or tax writeoff for partial and complete solar/wind systems, including replacement batteries. It also appealed for legislation to allow individually generated overcapacity to be returned to the electrical grid, with appropriate compensation.

“This has the potential to increase green energy usage,” Mahase said, following up with a request for increased exemptions on larger electric vehicles.

The chamber called for pension reform, with a phased tax reduction on pensions above $6,000 per month to 15 per cent to ten per cent and finally zero per cent over three years, starting in 2025. It also requested the inclusion of working people of retirement age, earning a pension of over $5,000 a month, to be included in the grant.

The chamber called for a review and adjustment to the NIS class structure.

“The present class is not relevant to current earnings by employees,” said Mahase.

“The appropriate contributions and retirement payments (can be made) based on this review.”

He believes voluntary contributions to the NIS should be approved for all employed and unemployed adults.

“This can grow the contributions and provide an opportunity for persons to participate,” he said.

The chamber lobbied for increased initiatives in current and new areas of food production, including new crops or methods of production, the use of technology in agriculture, and training (including the application of technology and modern farming, irrigation and access roads).

It addressed a demand for aquaculture production and cold-storage facilities with appropiate systems for buying, selling, and export incentives.

EXPAND, REPAIR ROAD NETWORK

Like the TTCA, the Couva/Point Lisas Chamber wanted continued infrastructural development, especially the expansion of the road network, with a focus on the redevelopment of secondary roads.

The TT Chamber of Industry and Commerce also produced an extensive document with recommendations.

However, it focused on five key areas surrounding economic diversification: agriculture, Tobago, the “Green Agenda,” and tourism and the arts.

It also recommended measures to address crime and other issues affecting investor confidence.

TTCIC president Kiran Maharaj signed off on the introduction, writing: “The (TTCIC) recognises that the national budget must be a blueprint for growth, resilience, and equity.

“The key recommendations are ones (that we) believe will drive our nation forward by improving the ease of doing business, increasing productivity, enhancing our digital infrastructure, expanding our export capabilities, and more.”

Maharaj said the chamber’s first priority must be to “streamline and simplify the processes thatbusinesses encounter.

“By reducing bureaucracy and eliminating red tape, we can significantly decrease the time and cost associated with starting and operating a business. This will not only encourage entrepreneurship but also attract foreign investment, driving economic growth.”

She said productivity is the engine of economic growth and that “in today’s digital age, robust infrastructure is essential for competitiveness.”

Maharaj said digital expansion will facilitate e-commerce, enable remote work, and connect citizens to global opportunities.

“Furthermore, we must invest in cyber security measures to protect our digital assets and ensure the integrity of our online platforms.”

"Our nation’s prosperity is tied to our ability to compete on the world stage.

"We commend our government on the development of the TT Trade and Investment Promotion Agency and the Special Economic Zone Authority which both seek to enhance our export potential and can increase our foreign exchange earnings and strengthen our economic resilience.

“Sustainability,” she added, “is no longer an option (but) a necessity. We propose a bold strategy be developed in renewable energy projects, including solar, wind, and hydroelectric power. This includes the development of public/private partnerships to accelerate the transition to a green economy.

“Additionally, we must provide incentives for businesses and households to adopt renewable energy solutions, reducing our carbon footprint and decreasing our dependence on fossil fuels.”

Moving away from a reliance on oil and gas, Maharaj said, “We must also review the opportunities in service sectors and the creative sector where we can harness the potential of the orange economy.”

The chamber has lobbied on behalf of SMEs for access to capital, mentorship programmes and incubation hubs.

“By nurturing these businesses, we can create a vibrant and diverse economy that is resilient to external shocks,

“While economic growth is essential, it must be inclusive and equitable. Access to quality healthcare, education, and social services is always considered and we look forward to government’s inclusion of these aspects.”