SOME OF THE MEASURES imposed by Finance Minister Chris Sinckler in last year’s Budget to raise Government revenue may have gone too far.
Andy Armstrong, Barbados Chamber of Commerce and Industry (BCCI) president, said also that on reflection, the measures together slowed consumer spending and pulled money out of the Barbados economy.
Armstrong told BARBADOS BUSINESS AUTHORITY that higher bus fares, rescinded tax allowances on travel and entertainment, and increased VAT hit the pockets of consumers, causing them to cut back on spending.
“A lot of the middle class start the month with less money. They have no choice but to fill their cars with gas and pay their electricity bills,” he pointed out.
Armstrong said the BCCI wanted the Finance Minister to introduce a measure or measures that would put more money in the hands of consumers.
Among the suggestions coming from the private sector was to raise the threshold from which personal income is taxed.
“We would like the $25 000 threshold raised. The base has not been raised for several years and a case can be made for it,” Armstrong disclosed.
In this connection, the BCCI?president and the executive director, Lisa Gale, confirmed that the organisation has asked the Finance Minister not to impose any further measures that might constrict consumer spending even more.
“As a Chamber, we said that we would want him to soften the impact of the measures affecting a lot of consumers in the market right now,” Gale said.
“We were very clear that something needs to be done [about Government revenue] but not anything that would have a detrimental impact on consumers, because it is the consumers who are driving business.
“If the consumers have no spending power, then they can’t patronize the businesses – and if the businesses are not being patronized, Government will not get the corporate profits.”
Gale said that despite the downturn in spending, there was still consumer confidence.
“A fascinating example is what is going on now with Rihanna. Barbadians are very strategic in their purchasing; they spend their money on food, entertainment, and are spending money on luxury items. . . .
“Because of the high standard of living, there are things that are still very important to us,” she noted.