The Chamber of Commerce has urged the Government to use the opportunity presented by this year’s budget to undertake key tax reforms to boost investment.
Members of the Chamber also want the government to reduce the number of ministries involved in the promotion of the country’s exports because the current number is too “fragmented.”
Those recommendations were made as part of a suite of private sector suggestions to build exports during the annual Private Sector and Government Budget Forum.
This year’s theme was Sustainable export-led growth – building and supporting momentum, according to a press release.
Chamber President, Namulauulu Sami Leota emphasised the need for Government to engage in structural tax reform, address supply side constraints and consider Public- Private Partnerships wherever possible.
“I know I don’t need to convince anyone in this room of the importance of building growth in our export sector,” he said.
“We’re all aware of the myriad of challenges facing Samoan businesses trying to reach overseas markets.
“This year, Chamber is providing clear recommendations to Government on how some of these challenges can be addressed, through the commercialization of agriculture, strengthened extension services and targeted tax reform to boost investment.”
<!-- nz_pacific_artcle -->
<ins class="adsbygoogle"
style="display:inline-block;width:250px;height:250px"
data-ad-client="ca-pub-9419815128221199"
data-ad-slot="3128289680"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>{/googleAds}
The Chamber’s Chief Executive Officer, Ane Moananu, explained that the 13 ministries and organisations currently involved in export promotion is too many.
“This fragmented approach,” she explained, “is a key driver of our export sector’s poor performance and slow development.”
Chamber urged Government to consider enabling tax reform including a reduction to the corporate tax rate and incentives for remittances to be invested in support of local projects.
The National Private Sector Organisation also asked Government to capitalise more effectively on Samoa’s services sector.
“When we think of exports, we often think of goods,” said Ms. Moananu.
“But let’s not ignore Samoa’s growing services sector. We should be building on our strengths as well as addressing constraints facing agricultural and manufacturing producers.”
The results of the Chamber’s annual Business Confidence Survey were also released today to coincide with the forum.
This year’s results indicate that most businesses are cautious about the overall economic outlook for Samoa in 2014 but more optimistic about the chance of their own business’ growth.
Almost 40per cent of respondents said they were planning to make more new investment this year than last year.
The survey results also indicated that the most significant constraints to business growth remain the high cost of essential services such as electricity, fuel and ICT, the shortage of skilled employees and Government taxes and charges.
In order to offset high electricity costs, Chamber urged Government to reduce the duty on solar panels and other energy efficient capital items.
The Chamber-hosted forum is held in March each year, giving the private sector an opportunity to influence the Government’s budget deliberations.
<!-- samoa_observer.ws -->
<ins class="adsbygoogle"
style="display:inline-block;width:336px;height:280px"
data-ad-client="ca-pub-9419815128221199"
data-ad-slot="5306335075"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script> {/googleAds}