Prime Minister Perry Christie
Reader poll
Do you think the government should delay the implementation of VAT?
- Yes, the government should delay VAT.
- No, the government should NOT delay VAT.
203 total votes.
By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
PRIME Minister Perry Christie yesterday hinted he might be open to pushing back the Value-Added Tax (VAT) target implementation date of July 1, 2014, if the Government was not ready for it.
In an interview with Tribune Business, Mr Christie said the private sector needed to realise it was on a “collision cause” with the Government over its need for additional revenue, and asked “what is the alternative” to VAT.
The Prime Minister added that he was not at all concerned over the level of angst being expressed by the business community regarding the proposed VAT implementation, and the potential, shock it might create for their firms and the wider economy.
Speaking with Tribune Business outside the House of Assembly, Mr Christie said: “Quite frankly, I am appreciative of all of the discussions that are taking place on VAT.
“At some stage I am sure the business community, [will recognise] that we are on a collision cause, c.a.u.s.e, with respect to this matter that we need additional revenue.”
The Prime Minister then appeared to blame the failed January 2013 gaming referendum for the Government’s rush to VAT, saying the Bahamian people had voted against an opportunity to generate a new income stream for the Government that would have resulted from taxing web shop gaming.
“When the country was presented with an opportunity for additional revenue with respect to taxing web shops, the country made a decision, at least we deemed it to be so in terms of that being an alternative,” Mr Christie said. “We have now moved a long-time considered position of the VAT, and that is now being publicly discussed.
“When it comes to developing your country you need revenue to do that, and the question is where is that coming from? If the business community is very anxious about VAT in its present form or in its entirety, what is the alternative? I presume the discussion will continue and then they will soon begin to discuss what are the alternatives.
The Government is proposing to implement a Value Added Tax (VAT) on July 1, 2014, at a rate of 15 per cent, with the hotel industry to be subject to a lower 10 per cent rate.
Mr Christie said, however, that he ultimately had the final say on implementation.
“July has been established as a date, but for me as Prime Minister, the date in my mind is when the Government is in a position to satisfy me that it’s ready for implementation,” the Prime Minister said.
“That’s not a July, August September or October. That is the real assessment that we are ready for it, and that the country is ready for it in terms of the preparation of businesses.
“Yes, there is a target date, yes, we are still moving towards that target date, but at the end of the day, I reserve the right and let it be known to be so, as the Minister of Finance, as the Prime Minister together with my colleagues, to determine at every stage of the way what it is we are doing and how it should be done.”
Comments
jackflash 10 years, 5 months ago
If they did a better job at collecting unpaid taxes we would not be in this position!
nationbuilder 10 years, 5 months ago
yup
watcher 10 years, 5 months ago
Let's face it - with only 8 months left, the government cannot possibly be serious about a July 2014 implementation. The following still need to addressed:-
Which businesses will be affected. What goods will / will not be rated. Enactment of the necessary law. Allocation of VAT registration numbers to affected businesses. Implementation and testing of VAT software by both businesses and government agencies. New stationery of affected businesses to include VAT registration numbers and any necessary redesign to show VAT as a separate line item. Establishment of a Government website listing which businesses can legitimately charge VAT (to stop scammers from illegally claiming they can add VAT to goods), together with the website offering the public a full explanation of the rules, rates and penalties. Employment of government VAT personnel, together with their education. Design and implementation of government accounting procedures manuals, premises to house staff, design, printing and distribution of relevant forms and websites. Setting up of Supervisory body with procedures to cover complaints, prosecution of offenders, chasing of unpaid taxes, together with reporting to the relevant ministry.
Education of judges, lawyers, accountant, auditors in order to provide courts with qualified personnel to handle court cases.
The above are just off the top of my head, and were compiled as I was typing. Feel free to add your own
ThisIsOurs 10 years, 5 months ago
Compiled as you were typing? Sounds like they need you watching this project.
larry 10 years, 5 months ago
My Bahamian people don't be blindsided the online gaming bill for casinos not owned or operated by Bahamians to get their licence is on the table
bismark 10 years, 5 months ago
The government is in need of additional revenue,we cannot escape that,but there are many ways to cut government debt,first cut down the civil service,get rid of Bahamasair,all government corporations,implement income tax for all of those who make 35000per annum and over.
ThisIsOurs 10 years, 5 months ago
Agreed, they are not even trying to tame the other side of the problem. Their indiscriminate spending. Travel should be at a minimum right now but persons are still traveling to conferences, that should be stopped. The entire cabinet travelled to an out island to hold a single meeting, what an utter waste of our money....millions spent on urban renewal to cut grass and now Brave Davis is apologizing because the grass had the nerve to grow back.
TalRussell 10 years, 5 months ago
PM Christie has surrounded himself with PLP's who are suppose to walk the plank for him, not tie his hands behind his back and lead him to the edge of the plank. First, Comrade Sister Loretta had good reason for slapping the hell out the PM's appointee to the Chairmanship of the Gaming Board, and now Comrade Andre is mess'in with his PM, challenging the introduction of VAT. My question to the PM is, will you fire Comrade Andre? Somebody in da House may need another one of of the good sister's 'a evaluation'!
The_Oracle 10 years, 5 months ago
I do not even know where to start on this tripe! 1) The Prime Minister is not concerned with the potential shock to Firms and the wider economy? Ludicrous if true, but a collapsed economy will generate less not more revenue! 2)We must do VAT because we voted against the Gaming Referendum? Utter nonsense, as VAT has been on the table since at least 2005, along with the pressure for Tax regime change. 3)Government Develops the Country? Chief, I'm sorry but the private sector develops the country, the Government is supposed to facilitate it, not strangle or tax it to death. You are doing the first, and are about to do the second to hasten the first. 4) Alternative? Stop spending, wasting, and pilfering and promising that which you do not have the money to give! You are not Moses! The discussion of VAT started with paying down National debt, moved to covering Recurrent debt, all the while still promising Free health care for all. Government is like a crack head with a Credit card! This one particularly.
ThisIsOurs 10 years, 5 months ago
Taxing web shops was the solution? How much did they say their annual returns were again? And how much did you expect to get in taxes out of that? What percentage of our debt is that amount? Come again, do not blame this on the populace who rejected what was seen as a social ill. You had a choice to revise the legislation but decided to take the easy way out and present us with trick questions, that is on you.
I thought the govt had no horse in the race, but here it is a ~year later and we learn that that was the solution to our continued solvency...
The date in someone's mind is not a date. The date is the date broadcast to one and all, a date by which all of the tasks required to implement the tax system can be reasonably accomplished, not one day before and not one day after. It requires planning. This administration seems incapable of putting together a workable plan.
GQ 10 years, 5 months ago
If the country's politicians past and present had not wasted so much of the revenue in so many ways we would not be in the mess we are in today.
Remember the old calypso song, "If I had listen to what mama say I would not be a mess today."
Politicians are like dirty diapers, Always full of s..t, stuck on your a.. and need to be changed often. But, then again you only change one set of incompetent nincompoops for another who are just as bad.
ThisIsOurs 10 years, 5 months ago
Did u make that up? That's a pretty good description!
ohdrap4 10 years, 5 months ago
I suspect they don't know what to do with the duty free shopping downtown.
If they charge VAT, the tourist will buy at the airport when leAVING THE US , or in other ports if in a cruise.
The solution would be to charge VAT only to locals on the jewelry, liquor and perfume.
the bahamians will stop buying locally and purchase stuff at the airport in Miami. i am sure the bay street merchants will be glad to give up the mother's day, christmas and valentines sales they make to locals.
Ok, y'all bahamians cannot gamble, and will pay more for perfume and liquors than the tourist. Nice.
SP 10 years, 5 months ago
Perry Christie is headed down the same path as Hubert Ingraham and will "crash and burn" in the end as well.
Andre Rollins and anyone else with sense should have learned a lesson from Ingrahams jelly belly MP's who were too stupid to stand on their own two feet and ended up destroyed politically right along with the little dictator himself.
Allow Christie and his Cabinet crew of idiots to identify themselves as the architects and keepers of discrimination against Bahamians.
The people will do the rest.....Ask Hubert...He now couldn't win a free prize in box of cracker jacks!
TheObjectiveVoice 10 years, 5 months ago
did you mean collision "course" with the government? ohhh I see where our good P.M. spelled it out. lol
B_I_D___ 10 years, 5 months ago
"The Prime Minister added that he was not at all concerned over the level of angst being expressed by the business community regarding the proposed VAT implementation, and the potential, shock it might create for their firms and the wider economy."
...and that right there says it all. I hope everyone is paying attention!!
B_I_D___ 10 years, 5 months ago
Also remember...the last 5 years the global economy has been in one of the worst recessions in our time. So don't go blaming all these businesses going out of business purely on politics. Now...the only businesses I really give any sympathy to are the ones that were adversely affected by the way the roads were re-routed...not the roadworks themselves, but the areas that actually got flipped one way only or other drastic re-routing. Those businesses have a legitimate beef beyond the global economy.
ohdrap4 10 years, 5 months ago
when I read the white paper, and I see that VAT example with the man going to the forest to cut wood and make furniture, I smile and think of Little Red Riding Hood.
the examples delivered on the radio are pathetic.
But, the financial secretary tried to minimize the impact of VAT on the cost of living by suggesting that merchants would actually lower their prices by marking products up only on the customs duty, since they get the VAT back. Too bad that he did not counter the example with actual figures.
A couple of days ago on the Tribune, a car dealer was worried at not being able to mark up his price controlled product on the VAt paid to government.
Suppose a restaurant owner pays $50.00 for materials, 30% duty and marks it up by 30%. He will sell the meal to the client for 50x1.30x1.30= 84.5. The client pays 15% gratuity, for a total bill of $97.15
Under VAT, where now the merchant pays 15% customs duty and 15% VAT, the financial secretary says the owner should mark the product only based on the customs duty, so he should sell the same meal for $50x1.15x1.30=$74.75. Adding 15% gratuity and 15% VAT, the client's bill would now be $98.85, a marginal increase.
The restaurant owner is collecting less money on the same meal, for a reduction in revenues, the restaurant owner does not want that, so i believe,as darrol Miller seems to suggest that the restaurant owner will continue to mark his product up to $84.5, charge 15% gratuity and 15% vat and the bill will turn out to be 111.75.
Therefore, the increase on the cost of living will be staggering, who is going to police to say that the markup will continue to be on customs duty only.
Sign in to comment
Or login with:
OpenID