CONTACT Magazine (Vol.19 No. 3 — September 2019)

Voice of business
VOICE OF BUSINESS
Trinidad & Tobago’s 2020 national budget
What recommendations would you like to see included in the 2020
national budget for Trinidad and Tobago?
Over the years, the Chamber has proposed
a number of fiscal measures to
be included in the national budget.
Once properly implemented, these
ideas have the potential to improve the
prospects of the business community
and to transform Trinidad and Tobago’s
economy. This year we would like to
highlight three critical areas which we
recommend for inclusion in the 2019-
2020 budget.
1. A sound financial system that
encourages entrepreneurs and
minimises risk
The Chamber recognises that there is significant underinvestment
of capital in Trinidad and Tobago. Institutions
in the traditional banking sector are, by design, riskaverse.
At the same time, many entrepreneurs struggle to
access funding to launch new businesses.
This presents an opportunity for both private and
institutional investors, who are likely to be less risk-averse
than banks, to connect with innovative entrepreneurs.
Government can intervene in the establishment
of structure for non-traditional investment using
incentives, structural support and the SME Stock
Exchange
We recognise that the government’s proposed collateral
registry would make capital more easily available to
borrowers. However, this solution is still in the early stages
of planning. In the meantime there is need for government
support in creating an enabling environment for such
investment, so that both investors and entrepreneurs can
make use of incentives and critical protections to ensure
minimal abuse/fallout.
Government can intervene in the establishment of
structure for non-traditional investment using the
following methods:
a. Incentives: Individuals or institutions that invest in
start-ups and other entrepreneurial ventures should
be incentivised to do so through income tax relief,
capital gains rollover, loss relief, and gains not
Reyaz Ahamad
President, Trinidad & Tobago
Chamber of Industry & Commerce;
Executive Director, Southern Sales
and Service Company Limited
subject to capital gains tax. It is also
critical for the government to ensure
that eligibility rules for the size of
investment and size of company are
appropriately scaled.
b. Structural support: A key aspect
of investment for a non-institutional
investor is engaging in due diligence.
It is critical that access to publicly
available business information should
be improved so that both investors and
start-ups can be protected. This can be
implemented through greater online
access to government records, and by
streamlining the querying process to
ensure greater ease of doing business.
c. SME Stock Exchange: To further encourage nontraditional
investment, it is critical that participation
in the SME tier of the Stock Exchange is promoted,
to incentivise trading activity and bring in more
participants.
Creating an educational campaign about the SME Stock
Exchange could help businesses to:
••
Know when their company meets the requirements for
listing
••
Learn the necessary steps, if they are not ready
••
Clearly understand what is required of listed companies,
as many companies hesitate to list, out of concern for
lack of privacy and loss of control.
2. An improved business environment that
fosters entrepreneurship
We should focus our energies on new, viable and
economically feasible start-ups that can move the economy
and society forward. The Chamber is already supporting
the promotion of micro, small and medium enterprises
(MSMEs) through our:
We should focus our energies on new, viable and
economically feasible start-ups that can move the
economy and society forward
22 SEPT 2019 chamber.org.tt