Thursday, October 22 2009

The Trinidad and Tobago Manufacturers’ Association (TTMA) is calling for the Government to issue outstanding VAT refunds to business owners.

In a release Tuesday, the TTMA said the situation was worrying as many businesses are forced to acquire overdrafts to meet the needs of their business while they await payment.

“Government’s inability to process and pay back business in a timely fashion is having a severe implication on the cash flow of local business as well as their obligations such as salaries/wages and purchasing,” TTMA said.

The TTMA admitted they have been working assiduously with the Ministry of Finance and the Ministry of Trade and Industry to assist members where possible, to ensure that their outstanding VAT refunds are paid.

The TTMA said Government has promised to pay VAT refunds within two months of the claim being filed, however, most business are not even being paid within four months of filing their claims and many have refunds outstanding for over six months to a year.

The release stated that contractors and suppliers have outstanding payments to be received for the goods and services offered to local ministries.

“Outstanding cash speaks negatively to research and development, increased production capacity, purchasing power and the general development of our businesses,” it said.

They also called for the Government to analyse payment problems and to tackle the root cause of each by establishing systems that are effective and efficient for a timely and necessary end to inefficient payment systems.