TRADE and Industry Minister Paula Gopee-Scoon has said Cabinet has designated several spaces as special economic zones (SEZ) under the Special Economic Zones Act.
She said these will be announced during the budget presentation on September 30.
Speaking at the TT Chamber of Industry and Commerce forum on private-sector opportunities in the special economic zones, Gopee-Scoon said this is part of government’s implementation of the act to ensure the programme gets off to a quick start.
“These areas will be spread throughout TT to encourage new investment and create jobs that would not have otherwise been available. The jobs created will not only exist within the zones, but will trickle down to the local communities and help create new opportunities for small business owners and aspiring entrepreneurs.”
The minister said the act was fully proclaimed on July 5, 2024, and robust regulations, a new incentive framework and a fully operational SEZ Authority have been created.
“Our intention is that the incentive framework be consistent with international best practice and enhance the attractiveness of the business climate of TT, while also protecting the domestic revenue base to the greatest extent possible.”
She called for collaboration between the private sector and the government to make the SEZs successful.
“Special Economic Zones are a popular policy tool by governments to boost industrialisation and attract investment across the globe; however, their success and impact are not a fait accompli. For SEZs to be successful, it is critical that the process be driven by constant collaboration among all stakeholders, just as we are doing today.”
Gopee-Scoon said the SEZ incentives will cover all three types of SEZ entities. These are SEZ operators, which act as landlords of special economic zones; SEZ enterprises, which do business in spaces managed by operators; and Single Zone enterprises, which are large stand-alone operations.
The incentives include 15 per cent corporation tax, a generous portfolio of concessions and exemptions on import duties and value added tax, as well as other taxes such as property tax and stamp duty.
Gopee-Scoon emphasised that not every business in TT will be eligible to participate in the SEZ regime, as it is meant to incentivise new investment activity in producing new goods and services, as opposed to the standard investments to upgrade plant and machinery associated with existing businesses.
She said the ministry was well aware of the need of the need to reduce red tape involved in doing business. It was working with the Customs and Excise Division, the Inland Revenue Division, Town and Country Planning Division, and the Environmental Management Authority, among others, to ensure SEZs would be models of efficiency and productivity that could be replicated throughout TT’s economy.
The event was hosted by the chamber in collaboration with Ernst & Young (EY).
[caption id="attachment_1109683" align="alignnone" width="1014"] Executive Chairman of EY Caribbean Wade G
