"I operate a small business - 5 employees and three delivery vehicles - operating on a shoestring, but I pay my taxes".
I respond telling her that she's lucky to at least be profitable in this economic environment.
"Lucky?" she exclaims. "With all the tax law changes I now have hire an accountant to complete my business license application and how will they do that without examining my books for an even larger fee? I'm scared I will have to downsize. That's if I can keep the company afloat!"
"I used to fill my own form in, but now that the turnover limit has been dropped to $100,000 for verification by an accountant, I have to hire an accountant who is already overwhelmed with completing forms for other people so how can I meet the imposed deadlines." The government really doesn't think things through in their desperate need for tax dollars."
I was about to jump in to try and comfort her a bit more and she cut me off. "But you don't understand, the accounting fees and additional bureaucracy added for VAT, my profit is so small I will have to dig into my savings to pay all those additional fees!"
With her voice becoming even more agitated she adds, "I can not afford to keep pouring money into what is becoming an open pit! The limited profits that now are about to become losses, are not worth the work, grief & aggravation…"
Regretfully this scenario is being played out in businesses large and small across the archipelago but the new rules and deadlines are even overwhelming the government's bureaucracy, not to mention accountants that have to certify numbers for businesses they do not audit or review.
Yet, there is an uncanny silence from the accountants after a brief press announcement in the press that the deadlines and the concern that they cannot meet the imposed deadlines for so many new clients.
After thanking me for listening she says, "I pay my taxes and do what is right, why is government wasting our tax dollars the way they do on things like Carnival and continue to raise taxes? Why don't they slow down on spending?"
Without taking a breath she adds, "and the Chamber can't seem to get anywhere on our behalf. I'm about to throw the towel in."
This brief conversation confirms the governments ever increasing tax burden is the wrong formula for the economic growth the country needs. Pro growth policies as opposed to tax grabbing seem more appropriate. But of course I don't have the ability to reach into potential clients pockets and take what I want like governments do.
The government needs a re-think of their onerous tax and spend policies sooner rather than later.
The sign above left should read "Going out of business because of government taxes and regulations".
