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21st DECEMBER 2007
MEDIA RELEASE
“PSC MEETS WITH MINISTER OF FINANCE TO DISCUSS PERFORMANCE OF THE ECONOMY ”

The Private Sector Commission met with Minister of Finance, Dr. Ashni Singh, on Wednesday 19th December 2007, as part of the Commission’s ongoing engagement with the Minister and the Government to discuss matters of shared interest and, especially, the 2007 Mid-Year Report on the Economy, and the PSC’s recommendations to Government to stimulate further growth.

The Minister provided an update on recent developments in the economy and on the outlook for the remainder of the year, and responded to a number of questions asked by the PSC delegation. The PSC said it was satisfied with the 5.8 percent rate of growth achieved in the first half of the year and expressed its desire for the realisation of growth targets of between five and ten percent in the future. The PSC committed itself to working closely with the Government in this regard and to do its part to build the trust and confidence which is necessary for an effective partnership.

The meeting also discussed the rise in the cost of living and the PSC, while recognising the impact that global factors were having on prices in the domestic and regional markets, reiterated its position that rather than reducing the 16 per cent VAT rate, Government should use the surplus revenue collected to start the process of reforming the remainder of the tax system, especially income and corporate taxes by giving consideration to the lowering these rates.

The PSC also called for increased efforts in the monitoring of, and on ensuring compliance with, the VAT and Excise tax systems and for a stronger emphasis on the curbing of smuggling, especially along our borders.

The Minister of Finance agreed that the PSC’s recommendations provided a good basis for technical analysis and continued dialogue on possible initiatives which could be taken in the future. He emphasised government’s commitment to the reform of the tax system and indicated that detailed studies in this regard are soon to be undertaken within the framework of the National Competitiveness Strategy to which the PSC is committed.