📈 Business community responds to new import duties rules

Happy Monday!

This week we cover the business community’s response on new import duties rules, Suriname’s commitment to CARICOM, DNA’s discussion on the foreign currency law, and issues implementing projects in the interior of Suriname.

Import duties exemption removed

• The government decided overnight to stop exemptions from import duties, now only allowed with presidential permission.

• The business community reacted strongly to the non-extension of partial exemption for business assets, valid from December 2023 to June 2024, predicting significant impacts on businesses and society.

• Increased import costs will lead to higher sales prices, weakening local businesses' competitive position and affecting the economy by increasing pressure on salaries and burdening businesses.

• Local producers are not stimulated by ending exemptions, and policies should promote local production and economic growth, according to VSB and ASFA.

• Slow progress in re-evaluating exemption policy is partly due to unreliable data, with the government partly responsible for this lack.

• Businesses should not suffer due to fraudulent activities and government enforcement failures; improvements in VAT collection and tax identification are crucial, argue business community.

• Policies must ensure market stability and predictability, fostering a reliable environment for investments, which is essential for sustainable economic growth and social prosperity. 

Suriname will support CARICOM countries affected by Hurricane Beryl

• The government will provide money and goods, including flowers, vegetables, meat, rice, water, and tarps.

• The National Coordination Center Suriname (NCCR) will coordinate the aid distribution to those in urgent need.

• Caricom heads of state discussed the devastation and necessary aid in a virtual meeting, with Suriname committing food and logistical equipment.

• Minister Ramdin emphasized the increasing concern of hurricane season for Suriname, with hurricanes approaching closer and having more impact.

• Hurricane Beryl, a powerful early-season hurricane, caused significant devastation in several Caribbean countries.

• The Caricom Heads of State meeting in Grenada scheduled for July 3-5 has been postponed.

• Minister Ramdin expects the Caricom Summit to be rescheduled within three to four weeks.

DNA criticizes low gold revenues and lack of regulation

• The National Assembly discussed three articles of the 1947 Foreign Exchange Regulation with many members agreeing to amendments that remove the president's role in determining the exchange rate and foreign exchange policy, aligning with the new Bank Act.

• Committee chairman Asis Gajadien criticized the lack of regulation in the small-scale gold sector, causing the country to miss out on revenue.

• Gajadien and other members highlighted the absence of promised financial overviews from the Minister of Finance and Planning, emphasizing a lack of transparency.

• Gajadien questioned the discrepancies in gold export figures and the government's regulatory shortcomings in the gold sector.

• Ronny Asabina noted the inconsistency within the coalition and criticized the inadequate regulation of the small-scale gold sector, calling for a comprehensive approach.

• Minister Stanley Raghoebarsing stated that the amendments harmonize with the Banking Act and promised further work and consultation on the comprehensive amendment.

• A second meeting to discuss the new Civil Code was canceled due to insufficient attendance, with only 24 of the required 26 members present.

Brunswijk claims that ABOP ministries are not receiving funding for the interior

• VP Ronnie Brunswijk stated that no resources are being released for the interior, preventing project implementation and causing suffering.

• Brunswijk mentioned that political leaders are unaware of the backlog and emphasized his regular visits to the interior since the 2020 elections.

• President Chan Santokhi countered Brunswijk’s comments asserting that no distinction is made between ABOP and VHP ministers.

• Santokhi highlighted the general lack of resources due to reduced income, despite regular financial updates by the Minister of Finance.

• Brunswijk revealed he has personally spent at least US$15,000 to transport teachers to remote areas to ensure schools operate.

• Transportation issues often cause teachers to stay too long in the interior or Paramaribo, with Brunswijk using his funds when Gum Air isn't paid.

• Brunswijk stressed the importance of unity among formerly enslaved people to address the backlog and ensure the entire country is considered.

• He contrasted the swift reaction to school closures in Paramaribo with the prolonged lack of education in the interior, which often goes unnoticed.