Five pieces of legislation will be repealed and the role of the Grenada Investment Development Corporation (GIDC), will change when legislators approve Grenada’s new Investment Bill before the end of the year.
“The Bill reflects a legal framework that encompasses best practice, so as to ensure that all prospective and existing investors and public officers understand all aspects of the Investment Act, which is in compliance with Grenada’s Constitution,” said Kaisha Ince, a Commonwealth Secretariat Legal expert.
During a briefing about the Bill on Tuesday, she told a cross-section of Grenadian stakeholders, which included investors and civil society organisations, that the new Bill is based on the assumption that the investment climate needs to be improved, and that Grenada wants to attract investments.
“It seeks to promote, encourage and protect investment in Grenada and provides investors with a stable framework of fundamental and enforceable rights and guarantees,” she said.
Timothy Antoine, Permanent Secretary in the Ministry of Finance reminded the stakeholders at the session, held at the Ministry of Finance Conference Room, that the Investment Bill is one of the commitments of Grenada in the Letter of Intent signed with the International Monetary Fund.
“The New Incentive Bill will see a natural flow of amendment to a number of existing laws including the Value Added Tax, the Customs Tax, the Income Tax and the Property transfer Act,” he said while explaining that the GIDC will be turned into a promotion agency.
“The purpose of the law is to attract investors and this new agency will be looking for investors; right now investors come to GIDC” he said. Elaborating further he said that the GIDC will continue to work and function until the new entity becomes operational.
“We will be keeping the train moving while we change the wheels,” he said as he re-enforced that the overall aim is to improve the business climate in Grenada. The key objectives under the Homegrown Programme include: Restoring Fiscal and Debt Sustainability; Improving competitiveness; and Increasing growth and Job creation.
Under the new Bill, the granting of concessions will be based on performance of an investor, and Government will have the right to review and revoke after a performance assessment.