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Valdes Dapena critical of lack of consultation on `polyester tax'

President of the Chamber of Commerce Cris Valdes Dapena has called for a closer relationship and understanding between businesses and the Government.

She said of building this relationship: "The assertions of `consultation with the business community' so often heard ringing hollowly on the floor of the House would themselves become meaningful. Minister, you know where to reach us.'' Speaking on this year's budget, Mrs Valdes Dapena said: "It often seems that `numbers' are merely being juggled to achieve a desired fiscal effect, without consideration for the probable business impacts.

"I can cite as an example, the retailers' requests for relief in 1999. Duty relief to that sector took the form of a shift in tariffs which has been popularly dubbed the `polyester tax'. The anticipated net result was an approximately $900,000 benefit to retailers. The unanticipated result was that a 400 percent increase in the duty on natural fibres reversed a hard won advantage to a market crucial to our tourist shopping.'' She said the results might have been better if the architect of that `benefit' had called the head of the Visitor Retail Division of the Chamber to discuss the matter.

She added: "I sincerely believe that he Ministry of Finance did set out to give an unambiguous `gift' to retailers.

"The drafters simply were not, and could not be expected to be, aware enough of the details of the operations they would impact to gauge the results of their chosen method. So now retailers are seeking relief from the relief.'' CLUB CLB