Senior Reporter
andrea.perez-sobers@guardian.co.tt
Prime Minister Dr Keith Rowley said yesterday the Government has not joined most of its regional neighbours in signing up to the African Export-Import Bank (Afreximbank), because the financial institution wants its employees based in T&T, both local and foreign, to earn tax-free salaries.
Rowley’s comments came after a talk show host claimed that Afreximbank would like to set up office in T&T, but is getting resistance.
During yesterday’s post-Cabinet news conference, T&T’s Prime Minister said the relationship between Africa and Caricom is extremely close in the financial area as both regions are trying to invite investment, grow trade, and strengthen diplomacy to work as a unit.
“You would see how it worked for COVID-19, as we had to rely on South Africa for our major batch of vaccines,” the prime minister highlighted.
However, Rowley noted that the difficulty being experienced with Afreximbank is that the bank is asking for all its staff to earn tax-free salaries in this country.
“I do not know why the bank is taking that position, but that is the bank’s position, that its staff whether local or foreign, would not pay tax in the country. That has far-reaching consequences because it is against the existing arrangements of privileges and immunities and policies.
“We have several international agencies that reside in Trinidad and Tobago and conduct business here. The law and the policies are if you are a foreigner working with the agency, you will not be taxed in T&T, but local people working for the UN or the OAS, you are taxable in this country,” the prime minister explained.
Rowley outlined that if the Minister of Finance were to agree to the locals not paying taxes, it would have far-reaching consequences for everyone. He noted that the Government is not prepared at this time to approve such arrangements.
Further, he said, in smaller territories where they do not have this problem, it is easier to say “yes” to the bank on this proposal.
“It is not so easy for us, so please do not compare us to St Kitts, because they do not have the same problem. We have a large contingent of people that would be affected by this move. We are not anti-bank. I met with the head of the bank some months ago at my office, and we are quite keen to have the bank function in the country, but the terms must be acceptable,” Rowley added.
The 31st Afreximbank annual meetings is currently being held in Nassau, Bahamas.
At the first day of the meetings, calls were made to strengthen the linkages between Africa and the Caribbean.