Reforms of National Insurance Scheme (NIS) for MSMEs Questioned by Small Business Association Chairman

The Government is being taken to task for not going far enough with reforms of the National Insurance Scheme (NIS) to benefit micro, small and medium-sized enterprises (MSMEs).

Chairman of the Board of Directors of the Small Business Association (SBA) Charles Carter has questioned whether the Government was serious about the growth of the sector.

“For instance, the development of our MSME sector and the creation of more diverse wealth among our citizens is a vital pillar in our national development. Have we, therefore, missed an opportunity with the revisions made to the National Insurance Scheme? The changes that were announced for self-employed individuals are welcomed and important. However, the changes only offer easier compliance and nothing transformative,” he said.

“In the past few years, we saw the impact of COVID, we saw the impact of the ash fall, we saw the impact of a hurricane on the business sector. Also note that climate change poses a real threat to our livelihood. Certainly, these should have sparked more creative solutions for the sector we say is important to our national development,” Carter argued.

In late July, while delivering a ministerial statement on the Revitalisation of the NIS, Minister of Labour Colin Jordan said it was estimated that less than 15 per cent of self-employed people were contributing to the scheme, and this was also hurting the National Insurance Fund.

He announced that the Government would introduce a simplified process with greater flexibility for self-employed individuals to make contributions and receive benefits, including making payments online and making payments at any time during the year instead of having to complete schedules or specify a period.

“Yes, pension is important, but what happens if another pandemic hits or, God forbid, a severe hurricane? Aren’t the people we charged with the responsibility of developing business and providing employment worth protecting from these disasters? This is nothing to do with political partisanship which seems to dominate the mouths of many today,” said Carter.

He was addressing the launch of Small Business Week 2023, which will be held this year from September 24 to 30, under the theme Facilitating a Transformative Agenda That is Fit For Purpose.

Carter reported that coming out of last year’s Small Business Week, which focused on digitisation, there were lobbying efforts for the monetisation of social media platforms so that small businesses could benefit.