Manufacturers welcome Budget measures but seek clarity

The Barbados Manufacturers Association (BMA) has expressed mixed sentiments as it welcomed key measures in Monday’s Budget, while calling for greater clarity and support for domestic producers. 

BMA President Rakeesh Bernard said his members did not get everything they wanted, and neither was everything clear. He said the association would be in discussions with the authorities within the coming days and weeks to gain clarity.

The BMA leader also outlined the aspects of the Budget which pleased manufacturers. 

“The introduction of measures to improve efficiency in the management of inputs across the sector is a positive step,” he told Barbados TODAY. 

“Previously, there were legislative impediments at the Customs level that affected efficiency and specifically resulted in wastage in manufacturing. We are happy that this will be fixed. We will work with the government to understand the specifics regarding how exactly this will be implemented.”

He was also delighted about the tax on unhealthy snacks: “The BMA was clear from the inception that we would work with the government in this area.”

Other aspects of the budgetary proposals that please the manufacturers include grants to encourage the beautification of homes. 

“We hope that this will benefit our construction group, and we will explore how we can facilitate a ‘buy local’ campaign around this. We want to be intentional about supporting these types of initiatives to ensure we promote a level of national pride as we go about such initiatives,” the manufacturing leader asserted.

Bernard also identified Industrial Development 4.0 as another bright spot, acknowledging that Export Barbados has been doing a good job in expanding the non-traditional areas of manufacturing. 

“The BMA supports any initiative that will bolster the overall impact of the industry on economic expansion,” he added.

The BMA also suggested areas for improvement. “We are passionate about assisting in the fight against non-communicable diseases (NCDs). Some of our members have reformulated their products, reducing sugar and salt content. There was no built-in mechanism to motivate continued reformulation. We understand that an excise tax applies to all imported and locally manufactured products with added salt. However, from a food security perspective, there should be some motivation built in to encourage increased local production of healthy food as manufacturers have worked hard to reduce salt content yet they will be taxed.” 

emmanueljoseph@barbadostoday.bb