Local businessman Eaves Ephraim says Antigua, as well as the rest of the region, is following an archaic model of economic development, which is more similar to slavery than to any contemporary model of development.
Local businesses appear to be at a financial disadvantage due to the number of concessions given to foreign businesses investing in Antigua and Barbuda.
Antigua ranks number two in the Eastern Caribbean Currency Union (ECCU) in the value of tax incentives handed to overseas investors.
“The concessions put the local businesses at a disadvantage in that we have to carry the burden of the taxation in this economy,” said Ephraim.
Ephraim added that the government has created a business environment that is “hostile” to native businesses.
According to International Monetary Fund (IMF) Mission Chief for Peru and Antigua and Barbuda, Leo Bonato, there seem to be no clear rules on which concessions are given and as such it creates an uneven playing field for local businesses.
Bonato also stated that the country is not getting the level of tax revenue that it could because of the excessive amount of concessions given to foreign direct investors.
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“Local businesses appear to be at a disadvantage;” it shouldn’t be ‘appear,’ they are.
This is why with the decriminalization of marijuana, I have said, and will keep saying it, it akin to slavery on the cotton and sugar-cane plantations.
The Rastafarian Community MUST demand better, than what the Government has given them.
I have always been and will continue to advocate for local businesses. Because the government is trying to attract more and more foreign investment into the country, the lure the investors with these ridiculous tax concessions, which in my view is counterproductive. Most of these tax breaks or concessions are for up to 25 years and sometimes longer, and in numerous cases when the time comes for these companies or businesses to start paying their share of taxes they pull up stakes, sell to another investor, who is more likely to receive similar concessions,and the country gets screwed. Meanwhile the local businesses continue to be at a disadvantage because there are no concessions, and whenever the government grants a waiver of some sort, it’s miniscule compared to what the foreigners receive. There needs to be a paradigm shift with regards to how the government deal with local businesses in regards to concessions, incentives, protection and in all fairness so that these local businesses can thrive and survive in our economy. Right now the local businesses are folding under the unlevel playing field and as soon as they close shop, a Chinese or Syrian is ready to take over. Where is the patriotism on the government’s part? Where is the support for local entrepreneur and businesses? The business climate in Antigua need to change, it cannot be business as usual otherwise we soon won’t have any local businesses around.
Julian, I could not agree with you more. As a matter of fact, I made the same argument recently, regarding the “revised” policy to tax BnB businesses, a middle of the road business which can boost Our local economy with a very large percentage of the funds from this budding industry, staying in the local economy vs foreign investments which operate, on a trickle down principle.
The Struggle continues….
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