Foreign exchange retention and overdue government payments discussed with Finance

The consultations took place on Friday, September 4, at the Ministry of Finance and Planning. The VSB also discussed with the minister developments within tax legislation and possible amendments that could affect companies’ ability to impose attachments and recover claims.

In addition, incentive measures for, among others, the agricultural sector and tourism were discussed. According to the business organisation, such measures can contribute to increased investment, production and economic growth.

Concerns over companies’ liquidity

The VSB also called attention to overdue payments by the government to companies. When government bills are not paid on time, this can, according to the organisation, put pressure on entrepreneurs’ liquidity position and business operations.

The association stressed that financial and economic measures must be carefully assessed in advance for their impact on investment, production, liquidity and companies’ competitiveness.

According to the VSB, predictable policy, clear regulations and timely involvement of the business sector are necessary for a stable business climate.

Follow-up consultations on foreign-exchange retention

The discussion with the minister has led to further technical coordination with the Deviezencommissie (Foreign Exchange Commission) on the retention scheme for exporting companies. Under this scheme, conditions apply to the repatriation and exchange of income that companies receive from exports.

The VSB considers follow-up consultations with the relevant policy authorities necessary in order to arrive at workable and sustainable solutions. The organisation says it will continue to monitor developments and will bring the interests and practical experiences of its members into future discussions with the government.