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.
@ Possie: Thank you for that observation. Some folks cannot face the truth, but these are the ones that need to start thinking about what is happening around them.
i am in favor of mr mc kenzie comments but will these business people pass on some of these benifits on to the consumers lots of them are reported to have gotten concessions from the government yet it is not reflected in thier prices
This is a must. It’s a win-win situation for the Government, a no brainer, as someone said earlier. Especially after loosing that big piece of tourism business.
We neeed many more industrious folks like Mr Mc Kenzie in Da. The Government should consider waiving some taxes in order to stimulate the ecomonic grwth of the country. However measures must be put on place to ensure that the various businesses dont rub and steal the people in differnt ways. Please give them the tax waive but please open you all eyes because these days so many con men and women out their.
What makes the most money for Govt? VAT, VAT and more VAT. They boast about it. they indicate Govt. is surprised to see the amount collected every year through VAT. The laziest way to build an economy is by crippling people through that excessive 15% VAT. People were enraged about high Electricity bills partly because of VAT. Dominicans have been begging Govt. to reduce on the VAT, but to no avail. They surely will not take Mc.Kenzie’s advice to ease up on Dominican entrepreneurs. They have not been listening to anybody’s good advice. When the foreigner gets Dominican citizenship and our passport for pittance that person already receives excess incentives to do business here. So why can’t the born Dominican get some waiver and grace period if he/she decides to set up a business? See how much millions the few persons who sold Dominican passports to build hotel ran away with. They gone with all the millions, no hotel, but Dominicans catching hell to do business in his own country. Before one could breath VAT,VAT VAT. Nada concessions. How do we expect this place to move forward? That is movement to the next level in reverse
@Creative: that person that put dislike wat can i say that person
said nothing wrong to click on dislike
This is a no brainer we must think to move to the next level means tax, tax. tax. up our noses. Good luck my G/ F brother hope some others follow your lead. Well we go see.
I think that is a very good idea.I have been calling on the Govt. to do that for a very long time.
Not only will it help local business,it will also attract foreign investors.
One of the obligations of Government,is to facilitate the creation of opportunity for its people.The stimulus of an ecomomy is investments and a solid work force.Therefore,the Govt. must create an atmosphere that is friendly to investors,and investments.
An economy hampered by restrictive tax rates will never produce enough revenue to balance our budget, just as it will never produce enough jobs or enough profits…….
All the best to you………
I agree with Mr. McKenzie 100%. Government needs to look at different areas where they can help Dominicans trying to start businesses in Dominica. Another area I have researched is the case in which a Dominican, not resident in Dominica at the time, is trying to repair and rebuild his/her property in Roseau, and put that property up for rent. From what I have concluded after my inquiries, after that Dominican takes a loan from a local financial institution to rebuild this property(this is bringing business to a local bank etc..),hopefully he/she gets tenants to rent the place so he/she can pay the mortgage, he/she has to pay the Internal Revenue the Withholding taxes on this property, which I believe is 15% of the collected rent(someone can correct me if I am wrong on that %). So, hopefully the rent will cover the principle and interest of the loan, but the property owner has to pay out of pocket that % to the government. Now what about other expenses for that building: taxes, insurrance etc.Remember this Dominican is not resident in Dominica, and that is why he/she cannot get any concessions from government when he is rebuilding, so he might even have to pay someone a % to collect and mange the place for him. There is therefore no incentive from government to encourage this person to rebuild an old house in the middle of Roseau, and uplift and beautify the city and move towards making it “the Premier City” in the caribbean as Matthew Walters had promised to do last year.
There are many areas where government can assist certain ventures and encourage people to put their money into projects, and I challenge the government to look into all this and help Dominicans at home and abroad who want to make improvements, no matter how small or how big, so that we can all collectively build a better Dominica slowly but surely.
goodluck bro mckenzie….but you always think of yourself and not others.
shame.
not only u sir to every one trying to start some where at least just to start hope they side with u
and help u all the way good luck.
I echo this mans sentiments….the government loses nothing when they do this….especially when it is creating jobs and keeping the profits local
this is a good we need it but i hope the roll doh small like them ones i buying in town lord them people wicked one roll a day for one person make something good and soft i will give my full support behind you and your business good luck bro