Should local artistes who perform abroad be taxed?
That was the question and proposal offered during a Joint Select Committee (JSC) on cultural diplomacy yesterday.
The idea, according to Naparima MP Rodney Charles, was a potential solution to generate revenue through the taxation of chutney, soca and calypso artistes who perform across the region and wider world.
It was also proposed that taxes be placed on materials imported into Trinidad and Tobago for Carnival designs.
The JSC, chaired by Minister of Trade and Industry Paula Gopee-Scoon, sought to inquire into the efficacy of T&T’s cultural diplomacy and opportunities for strengthening its cultural and tourism products.
Gopee-Scoon lamented the failure of the Ministry of Foreign and Caricom Affairs and the Ministry of Tourism, Culture and the Arts to streamline and formalise culture as a business.
Charles also suggested consulting a tertiary-level academic institution such as the University of Trinidad and Tobago to determine a range of possibilities that could benefit the Board of Inland Revenue (BIR).
Permanent Secretary in the Ministry of Tourism, Culture and Arts Videsh Maharaj said it is an option.
“In terms of the return, we do not have that figure. I don’t think CSO captures that data but it’s definitely something that we could look at and it’s definitely something that I think we would need,” Maharaj said.
Charles also expressed his belief that wire benders and seamstresses were losing out due to the importation of beads and other materials from China for Carnival costumes, rather than seeking out local manufacturers. He said taxes may encourage costume designers to support local, revitalise a large cross-section of the industry, and eventually lead to the export of costumes to other countries.
In response, Maharaj noted that taxes currently exist on these items. He said the real issue lies in finding skilled labour.
“A couple of decades ago, there were a lot of persons, a lot of seamstresses and a lot of those types (of) activities. But, persons would have virtually moved away from it as opportunities were being created in other areas of the economy. It’s something we could look at but, to get the labour back there, because that is heavily labour intensive, it’s going to have to be quite attractive in terms of payments for compensation for persons,” he said.
The consensus at the JSC was that the State cannot accurately quantify the earnings for Carnival and other events, which needs to be remedied.
Meanwhile, though she acknowledged that artistes perform abroad independently of the State, Permanent Secretary of the Ministry of Foreign and Caricom Affairs Reita Toussaint said the country may be able to benefit financially.
“The performers go abroad on their own steam. They do well, they showcase, they present, promote but what we have to do between us (both ministries) is to find a way to … be more strategic, find a way to package what we have, in a way that brings discernible and precisely discernible revenue back to Trinidad and Tobago,” she said.
However, the JSC chair repeatedly sought to remind the permanent secretaries of both ministries that culture is a business that ought to be formalised.
“It really has, to my mind, to do with the formalisation of these businesses because in effect, it’s a business that you’re running, if you are, in fact, earning revenue, whether it’s locally or foreign or so and there is that problem in Trinidad and Tobago with many small and micro businesses that are not formalised and registered and, therefore, it’s difficult to track where they are, what they contribute, what contribution they should be making to the Government etc,” Gopee-Scoon said.
“So it’s an area of formalisation that has to be encouraged and I would like to hear just the views of the Ministry of Tourism, on the whole formalisation of not just Carnival but of your producers, your source, your calypsonians, your soca performers, your bands, etc. Now, the new procurement legislation requires that all of these entities be registered as well.”
Meanwhile, the Director of Culture at the Tourism Ministry, Tej Ramlogan, said artistes are registered with the ministry in order to receive grants and tax exemptions. He noted, however, that more information is needed to improve the system.