Reducing cost of doing business

In a pre-budget discussion held at the Metropolitan Chamber of Commerce & Industry (MCCI), Industrialists and economists were unanimous in their calls for steps that would be conducive to reducing the cost of doing business. Emphasis was placed on increasing investment in infrastructure and reducing lending interest rates so that industry and agriculture may receive a boost, particularly in the aftermath of a spate in political unrest that has severely affected all sectors of the economy. Economists are of the opinion that the budget needs to have policy measures that will facilitate financial support to farmers so that they may weather fluctuations in rice prices. With regards to improving the investment climate, calls have been made to fast-track setting up of special economic zones, for both domestic and foreign investments.

Some experts believe that the tax net needs to be broadened to facilitate greater revenue generation for the exchequer and at the same time allow for a general reduction of taxation rates. Given the general shutdown the economy experienced from the last quarter of 2014 into the immediate aftermath of polls due to political violence, it has become imperative for the government to rethink imposition of value added taxation for small business during the troubled period. Some experts take the view that recapitalisation of loss making state-owned banks with tax payers' money instead of making the boards accountable is a step in the wrong direction. The overarching message is that political stability must be ensured for the economy to function smoothly and for business to recuperate from losses suffered.