Sep 2016 Financial News

Chamber: Business costs increasing

Sep 08, 2016

The increase in national insurance rates will result in a two per cent increase in business operations, the T&T Chamber of Industry and Commerce said in a media release yesterday.

“There is the view that already our members have to treat with increases in other spheres, despite the current economic environment— we refer here to the Green Fund levy and Business Levy which increased by some 300 per cent. The Chamber said National Insurance contributions have increased four times since 2012 and with this latest adjustment, the cost of doing business has increased particularly for labour-intensive industries such as the retail sector.

The group noted that there have also been increases in the Green Fund and Business Levy. “The impact is therefore greater for companies. The NIS amendments also invariably mean that employees are taking home less disposable income and business’ ability to invest has been negatively impacted,” the Chamber said.

The business organisation added that it is “hopeful that increased benefits will come about as a result of the amendments so that the effects on both business and the employee would not be as burdensome.” That’s the position of the T&T Chamber of Industry and Commerce (TTCIC) about the decision taken by the National Insurance Board (NIB) to increase National.

With the revised contribution rates, workers with monthly earnings of between $5633 and $6456.99 are now paying $61.40. In announcing the increases, the NIB said it was justified because it will result in a greater number of the customers being able to qualify for a retirement pension in excess of the minimum pension of $3000, with simultaneous increases in other short term benefits.

Source:
Nadaleen Singh
Trinidad Guardian
Thursday September 8, 2016

http://www.guardian.co.tt/business/2016-09-08/chamber-business-costs-increasing