Owner of the recently launched Nature Island Paper Product Inc (NIPP inc.) Severin McKenzie has called on government to review fiscal incentives for manufacturing.
Speaking at NIPP Inc’s launch yesterday, McKenzie recommended government waive the Value Added Tax (VAT) on raw materials for manufacturing in the initial stages of operation, which is a better incentive for local manufacturers.
He also proposed the removal of excise duty on motor vehicles to be used in the manufacturing process.
“It is not fair for a manufacturer who is starting a new manufacturing enterprise to go to the bank to borrow funds to pay the government of Dominica 15 percent VAT and 28 percent excise duty before operations begin. This is in addition to the payment of customs service charge and environmental levy,” he said.
“We attempted to purchase motor vehicles for our operations and the difference between duty free and duty paid was just $5,000,” McKenzie stated.
Yesterday, the NIPP inc launched two brands of locally produced luxury tissue which will be available for sale in local supermarkets within the next two weeks. They are Falls Soft and Emerald Touch.