Chamber lauds budget, but raises concerns on borrowing, spending

The Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) in a statement released yesterday lauded the government’s move to further support and grow small businesses, but raised concerns that additional spending could lead to increased taxes, eventually negatively affecting businesses in the country.

The BCCEC stated it is looking forward to the results of the public expenditure review being conducted by the government and the Inter-American Development Bank, to see what recommendations are given to shore up the government’s fiscal position.

“We continue to see additional spending on supporting small businesses through the SBDC (Small Business Development Centre),” the statement noted.

“However, the increase in spending to fund the initiatives and to continue COVID-19-related support is leading to an increase in borrowing.

“The business community is concerned that it is inevitable this level of spending will lead to an increase in taxation, which will affect the private sector either directly or indirectly.”

The Chamber stated its initial impression of the government’s 2021/2022 annual budget plan is that it contains some items which could have a positive impact on the business community, however these items require further details.

“Over the course of the national budget debate, the BCCEC will review the draft estimates and listen to the ministers as they present their plans; such plans will give the private sector insight into the policies that will be used to implement the items contained in the budget.”

The BCCEC noted in the statement that the initiatives of interest include the government’s plan to provide duty-free concessions to small businesses; the launch of a public-private sector infrastructure fund; the employment incentive program for businesses that provides tax credits for the hiring of up to 10 new employees; the expansion of the digital footprint of government services; and the expansion of the two government-owned hospitals.

“The BCCEC looks forward to learning more about the proposed initiatives so that the business community can be positioned to once again contribute meaningfully to the economy of The Bahamas,” the statement added.

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source https://thenassauguardian.com/chamber-lauds-budget-but-raises-concerns-on-borrowing-spending/