President of the Manufacturers' Association (TTMA), Nicholas Lok Jack said he welcomed the move by Finance Minister Larry Howai to clear the backlog of VAT returns due to manufacturers.Howai said said he will simplify the VAT refund process and will allocate $1 billion to clear the backlog."Lok Jack said he is happy with the allocation but while he welcomes the measures for VAT refunds, he said there is need to explain other measures in the budget."We would like to see a lot of clarification on certain issues," he.Commenting on the decision to decrease deficit financing, Lok jack said: "Any country would like to see a balanced budget. I would like to see expenditure in the developmental projects that will assist in bringing in revenue."
He said he was satisfied with the measures outlined for national security and supports "anything that would bring the level of crime and bring national security to a more reasonable level".Howai said in the budget that restructuring of the Export/Import bank is "urgent" since it must play a developmental role.He added: "I propose to re-capitalise the Exim Bank with equity injections over the next four years to allow the bank to finance exports into extra-regional markets at a reduced cost of funds to facilitate the process of developing our export manufacturing sector."In response, the TTMA said it is concerned with the proposed four-year period it will take to accomplish the recapitalisation, it suggested tha: "the programme be expanded to include non-traditional markets, as put forward in previous budget recommendations, as well as the availability of finance below market interest rates."On re-introduction of the property tax, the group said: "The association is in support of a phased system for the re-introduction of land and building tax. However, the association objects to the inclusion of plant and machinery under this tax."