“We are requesting that the National Provident Fund consider suspending the 10 percent contribution to the fund for 12 months or so while we ride through this crisis,” Sina Retzlaff-Lima said.
According to Lima, if income taxes were suspended, it will not only ease the burden on employees it will also minimize costs for the employers.
At the Samoa Economic Forum last Friday, the chamber of commerce said the international financial crisis has taken its toll on the private sector.
“We have noted a 30 to 50 percent reduction in sales, 40 percent reduction in yield and reduction in employment across the board,” Lima said.
Since the crisis more than 2000 employees in the private sector, particularly manufacturing, have lost their jobs.
According to the chamber presentation, there are many ways the government can cut back costs for local businesses.
Lima suggested that the Accident Compensation Corporation Fund be refunded to the contributors if it is unclaimed.
“It is our money after all, and we are merely asking for it back, you do have millions anyway,” she said.
Currently the employer contributes 1 percent to the ACC fund for employees, and Lima said that if this is not used after 50 or so years that it should be returned to the person, or redirected to health care.
In her final recommendation, Lima reiterated a point made by many throughout the Forum, and that is for state owned enterprises to reduce their pricings.
“The electricity, water and shipping are so high in prices that it is costing the private sector a tremendous amount to maintain,” she said.
She also recommended that the government focus only on infrastructure that directly contributes to economic growth.
The recommendations from the forum have been submitted to the government for consideration.
