Ahead of the 2014/2015 National Budget which will be presented on Monday, the T&T Coalition of Services Industries (TTCSI) is calling for creation of an efficient and viable e-commerce environment as a mechanism for the further diversification of our economy.The umbrella body for the services sector in T&T is hoping for early passage of the updated Audit and Exchequer Act to allow online payments to and from government entities.
The TTCSI said the banking sector also needs to be encouraged to provide the facility for acceptance of online payments by its customers."While an attempt has been made in the yet to be assented to 2014 Finance Bill, to improve the facilitation of e-payments, by amending the Electronic Transaction Act and the Exchequer and Audit Act, these measures seem piecemeal at best," the group said in a statement.
The TTCSI also expressed concern about the length of time it takes for public sector bodies to pay for goods and services, which it said has been very detrimental to the operations of many firms."These protracted delays undermine the capacity and confidence of the sector and are therefore counterproductive to economic development. "
The group has recommended that measures be introduced to improve the timeliness of government agencies regarding payments for goods and services. It added that VAT is payable upon collection of payment should not be solely based on the invoice date, as this further exacerbates the problem.
The TTCSI said the largest members in the services industry identified by government for diversification, the creative sector, requires a more enabling environment for growth and development.
The group made the following recommendations for that sector:
�2 Amend section 10G of the Corporate Tax Act to include tax allowances to individuals who incur expenditure on visual or performing artistic work produced by a citizen of T&T
�2 All references to tax allowances for sponsorship in the Corporate Tax Act should be expanded to include investments
�2 Review Carnival governance structure to ensure sustainable transformation within three years
�2 Facilitation and establishment of the Carnival Entertainment Complex at Frederick Settlement in Caroni, with its 12 strategic business units
�2 Incentives for the animation, fashion and art industries.