The Tribune

By DANA SMITH

Tribune Staff Reporter

dsmith@tribunemedia.net

FOLLOWING the government’s announcement that opinions are being sought on which items should be exempted from Value Added Tax, The Tribune hit the streets to see what Bahamians think about the new tax system, set to come into effect next year.

Earlier this week, Minister of State for Finance Michael Halkitis said officials wanted to ensure consumers are not faced with extreme hikes in grocery prices when VAT is implemented on July 1, 2014.

“In most countries, and there are around 150 of them – basic food supplies, books, medicine and educational and financial services come in that category,” he said.

“We intend to follow that same type of thing. But the public will decide on the items they’d like to see exempt.”

According to the government’s white paper, ‘Tax Reform to Secure Adequate Revenues for the Future’, VAT will be introduced at a rate of 15 per cent.

Frankie Burnside said common food items should definitely be exempted but “unnecessary items” such as tobacco and liquor should be taxed.

“I think bread-basket items, for sure that should be exempt (and) baby stuff, that should be exempt,” he said. “Look at what the grass-roots areas need. The rice, the grits, you know, the canned milk and stuff like that.

“But cigarettes and tobacco – they should tax that. Liquor too. Stuff that’s not necessary.”

Kayla Dorsett also said items such as liquor should be taxed.

“I don’t think we need it but I do think we can use it to some degree,” she said. “I think when Bahamians travel to the US they are more responsible with their spending because they know tax is added to every purchase.

“But over here, they don’t have that responsibility, therefore they just spend their money irresponsibly at times with no thought. Its like they cry ‘poor mouth’ all the time but truth is, Bahamians are wealthy.

“And if I had a say in adding it to something, I would definitely add it to alcohol. They drink too much.”

Don Armbrister said the country does need “some sort of tax” given its financial state, but criticised the timing of a VAT.

“I don’t think this is a good time,” he said. “It’s a way of getting revenue, but people are struggling now.”

Ray Brown said: “I don’t think they should implement that. We’re not making that much money, we don’t have any jobs. It will only keep the poor man poor.”

And when asked what items he would like to see exempted, Mr Brown added: “Toiletries and food shouldn’t be taxed. Everyday things.”

Alexander Stubbs said VAT would be good for the country and for businesses.

“For business owners, they’ll be benefiting more,” he said. “They pay for what they make, rather than paying for what they’re trying to sell.”

Mr Stubbs added that “of course” certain items should be exempted from VAT, such as electronics.

“The ridiculous prices they have now, I hope they wouldn’t increase them,” he said.

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