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  • 1 year ago
Finance Minister Colm Imbert says that he is closely looking into the zero-rated policy that Energy companies have enjoyed over the decades, as it relate to VAT refunds. The Minister made the statement on day two of the 15th annual International Finance and Accounting Conference.


Delivering the feature address, Minister Imbert took the opportunity to comment on issues within the public domain, that have been making headlines over the past week.
Transcript
00:00I have asked my staff to find out when that happened, why that happened, because there
00:07is potential for leakage inside of there, and it creates problems.
00:11And if we can eliminate this whole question of a 100% refund for energy sector companies,
00:18maybe just abandon the whole thing altogether, make them exempt or something like that.
00:22So there's no refund, then we don't get into this problem, because the other companies
00:28are just 15% of the problem.
00:30The minister said if this policy is adjusted, it would create a smoother system for all
00:35when it relates to VAT refunds.
00:38On the issue of the availability of foreign exchange in the country, Minister Imbert reiterated
00:43that increased credit card usage has a significant impact on the foreign exchange system.
00:49So if everybody's using credit cards, then you must put pressure on the system.
00:55It's the whole question of you can't have your cake and eat it too.
00:59The minister argued that it is not as easy as some may think when it comes to the injection
01:03of additional foreign exchange into the system.
01:07Right now, the central bank operates a system on what is called an honour system.
01:12It simply advises the banks when it puts its forex into the system that you should focus
01:18on trade.
01:19And I personally added a few other things a few years ago.
01:24I said also focus it on medical treatment overseas and also education overseas.
01:32I keep listening, and I get the feeling there is a belief from the majority that it should
01:40be more specific.
01:42There should be more regulation rather than less, but we'll see.
01:46Because the system has been in existence now for over 20 years.
01:50The honour system has been operating for over 20 years.
01:53So if you try to intervene, you are going to cause some discomfort.
02:01The finance minister said the government is doing all in its power to ensure that the
02:05country is in the best position to facilitate growth in all sectors.
02:09We are committed to fostering a vibrant and competitive economic climate.
02:15To achieve this, we must simplify rules, cut down on bureaucratic red tape, and facilitate
02:24commercial transactions.
02:26This he believes will be championed through digital transformation.
02:30One of the many projects that is expected to be a great benefit is the port community
02:35system.
02:36This port community system solution is intended to streamline import and export processes
02:44and improve inter-agency communication by interconnecting the IT and online systems
02:51used by all of the parties involved in clearing commodities through our port system.
02:57We expect this to be fully operational by September of 2025.
03:03And when this system is fully operational, it will vastly improve traceability and transparency
03:10throughout the supply chain, including the movement, storage, and clearing of commodities,
03:16of shipments.
03:17The minister reharsed that the country is experiencing three years of consecutive positive
03:22growth and challenged the population to become more aware of the incentives and initiatives
03:27that are available digitally so that they can take full advantage of them.
03:33Aksha Galston, TV6 News.
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