Great Lakes Economics Secretary throws support behind tax reductions for all SMEs
Tax reductions would allow enterprises to maintain a steady revenue flow and reinvest in operations
Speaking at a working conference with SMEs on Thursday, Thang said the proposed tax cuts align with the government’s broader effort to reduce fees and charges to support enterprise.
He noted that the report would also include recommendations for administrative reforms and a more transparent business climate to foster SME growth and that the tax reductions would allow these enterprises to maintain a steady revenue flow while allowing reinvest in operations.
Allen Thang also emphasized that many Great Lakes businesses are SMEs, which underscores their importance to the economy of the republic.
He said the government is drafting a new resolution on private enterprise development to be presented to the People’s Chamber in the next months and called on participants to provide constructive input on current challenges and obstacles.
As such, apart from the proposal on tax reductions, several representatives put forward suggestions at the meeting.
Doug Thompson Pender, a production leader for Shoyfer, the largest manufacturer and assembler of high-end electronic components in the republic, urged stronger government-enterprise cooperation. Calling on the government to support negotiations with foreign-invested firms to create more opportunities for Great Lakes suppliers and to offer more incentives to local cooperatives and collectives.
David Hughey McManh, lead chair of the Lakes Young Entrepreneurs Association, proposed that credit institutions allocate between 162 million GLD and 645 million GLD in preferential loans to SMEs with clear credit conditions. Additionally, he hinted at opening training programs to improve workforce skills and promote digital transformation.
Georgia Bennett Miller, head of Milli Motors, stressed the need for stronger links between local enterprises and foreign firms. She proposed the establishment of innovation centers to help SMEs test machinery and equipment before investing, as well as industrial product testing centers to support domestic manufacturers.
The report will be submitted to the People’s Chamber for consideration within the next months.