Tax cuts, better access to financing on GCCI’s 2023 lobbying calendar

Lobbying points for the Private Sector in the new year would revolve around pushing for greater access to finances for the business community, and obtaining greater tax cuts.
President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker, made this remark during a recent event, as he highlighted the GCCI’s goals for enhancing the business sector.

“Our goal for the new year is to foster collaborative and consultive partnerships in decision-making initiatives that will be in the best interest of the business community, and by extension Guyana. In this regard, we endeavour to enhance our efforts to push for amendments to policies and legislation, where possible, to promote better access to finance, capital markets, and tax reform,” Tucker relayed.
This Private Sector official is hopeful that, in 2023, commercial banks would be able to fulfill the needs and demands of enterprises, so as to enable them to realise their full potential.
“We hope that the banking sector will respond to the needs of the micro, small and medium-sized enterprises (that are) looking to grow in the simplest ways. It is paramount that we have the access to finance (if we are) to play a significant role in the oil and gas sector and to realise the potential of being the engine of growth,” he has said.
Tucker revealed that, based on work done by the GCCI, more than 50 percent of businesses need formal financing to meet basic working capital needs, and less than 50 percent need financing for fixed investments and to pay off debts. As a result of this discovery, Tucker said, “These figures indicate the utmost need for collaborative efforts to ensure there are more allowances for businesses to augment their growth potential through invoice factoring, contract borrowing and financing through receivables. That is to say, innovative forms of financing.”
It has been outlined that the Private Sector needs capital markets that can be accessed by small- and medium-sized enterprises. Non-traditional ways of financing, he added, can be spurred to support participation of these entities and boost competition. Investor inclusion by floating micro bonds in the public domain would ensure that every Guyanese can participate meaningfully in the country’s growth.
“More needs to be done to foster capital markets developing for supporting business growth, which will boost their competitiveness. Supporting the participation of average Guyanese in the development of small- and medium-sized enterprises via a junior stock exchange is of great importance if we are to spur non-traditional ways of financing,” he declared.
In addressing tax reform and lower tax rates, he said the GCCI is looking for removal of excise tax on new vehicles — creating the advantages of greater safety on the roadways, emission control, and reducing consumption of spares. Tucker also called for better rates for income and corporate taxes.
“Both cross country and micro level studies suggest that lowering tax rates can increase investment, reduce tax evasion, promote formal firm creation, and ultimately lead to an increase in firms’ sales and GDP growth,” the GCCI President has posited.