By PACO NUNEZ
Tribune Staff Reporter
DNA leader Branville McCartney has dismissed Prime Minister Perry Christie’s latest comments on Value Added Tax as “utter nonsense” and criticised the government for trying to ram what could prove to be a disastrous tax system down the throats of Bahamians.
Officially declaring his party’s opposition to the implementation of VAT, Mr McCartney also criticised the Prime Minister for conflating the issue with the failed gambling referendum, in what he claimed was nothing but a transparent effort to deflect blame for the controversial move.
“This Prime Minister,” he said, “who said he had no horse in the race with respect to the gaming opinion poll, is telling the Bahamian people that it is OUR fault that he has no choice but to implement VAT. What utter nonsense!”
If Mr Christie’s claim is true, the DNA leader said, Mr Christie should explain to the public why he did not reveal before the referendum “that he indeed had a financial horse in the race.”
Last week, Mr Christie said those in the private sector who question his plan to implement VAT are “on a collision course” with government over the need for additional revenue. He also said VAT was made necessary by the public’s rejection of the revenue collection possibilities of legalised web shop gambling.
But Mr McCartney said if the Prime Minister really believes taxing web shops will eliminate the need for VAT, the DNA challenges him to use his moral compass, “grow a twin pair of courage and conviction” and legalise, regulate and tax the web shop gaming industry.
He said: “The DNA wishes to make it clear we are in no way in support of the current legislation to enact Value Added Tax as a pretentious means of saving our over-strapped economy.
“While the PLP are pandering to special interests and buckling under pressure from the World Bank and the IMF, many Bahamians are watching in bewilderment and disdain.
“Our PM and his ministers have decided VAT is the answer to our financial woes. How can such a system of taxation, which many agree would hurt our impoverished the most, be the best way to strengthen our economy?
“This is far from the truth if we look at other countries, especially those still developing. The implementation of VAT has the potential to cause further unemployment, closure of businesses and pure misery.”
Responding to the government’s insistence that it needs an additional $200 million in revenue, the DNA proposed two changes which it said will net $300 million:
• Reduce the Central Bank interest rate to one per cent.
“This will free up $100 million from loan payments on existing government debt. This will also put an additional $200 million back into the economy from private debt payments,” Mr McCartney said.
• Introduce a National Procurement Agency, an agency that prevents fraud, waste and corruption in the awarding of government contracts.
This, Mr McCartney said, could save as much as $200 million, currently wasted every budget cycle.
“It seems, however, that the PLP are determined to ram VAT down our throats while they sit in the House of Assembly insulting one another and laughing, instead of seriously discussing how to better the quality of life for all Bahamians, in particular the poor among us,” he said.
“Leaders in other nations have fought back against the aggressive tactics of the world’s financial organisations pushing systems of VAT. Iceland and Hungary are two success stories, and the Turks and Caicos adamantly refused to sign on.
“VAT could prove to be catastrophic for the majority of residents in this country. A reputable Bahamian banker, Anwer Sunderji, has indicated that VAT will increase the cost of living in the Bahamas by at least 10 per cent. Several businesses are already insecure having begun the process of offering early retirement and employee layoffs, in anticipation of July 2014. Others businesses are preparing to close.
“VAT’s implementation in the New Year is nothing we should take lightly with an already depressed economy and massive unemployment.
“The people of the Bahamas cannot afford to permit the PLP to play a game of chance with our future and that of generations that follow, especially while they are unwilling to make sacrifices themselves.
“With every passing day, Bahamians throughout our archipelago are becoming painfully aware that the PLP and FNM are two sides of the same coin. They both believe in maintaining the status quo and a false system of real choice even while our people become more and more disenfranchised,” Mr McCartney said.
Comments
dfitzerl 10 years, 5 months ago
“With every passing day, Bahamians throughout our archipelago are becoming painfully aware that the PLP and FNM are two sides of the same coin. They both believe in maintaining the status quo and a false system of real choice even while our people become more and more disenfranchised,” Mr McCartney said. Could not have said it better.
TalRussell 10 years, 5 months ago
My Comrades I ain't mak'in this stuff up. It the truth. Now we have the Reds Comrade Leader Minnis telling us that although he knows what the position of the red opposition is on VAT, he wants to keep it a secret. But Sister Loretta says she is being open about what her position is on opposing the VAT. Is t really Loretta or Minnis who is running the show over at the reds Mackey Street Party Headquarters? Is it any wonder Abaco's very own Edison wants nothing to do with the party ticket he got elected to da House on. Might as well promote their "silent red shirts" former junior minister Bran to the party's leadership position, before that train wreck Sister Loretta grabs lays her slapp'in hands on its reigns. An all new Papa who will not just insult you but slap ya backside into place! No damn wonder they can't raise monies to run the party while in opposition.
ohdrap4 10 years, 5 months ago
VAT, VADE RETRO SATANA
The_Oracle 10 years, 5 months ago
Well said Mr. McCartney, even though you were once a part of one of the parties so condemned, it is never too late to repent! However, be mindful that the DNA grows into something completely different. Transparency is a clean pane of glass, no dirt or grime thereon. Good Governance is not about ridicule persecution or banishment of a single Bahamian voice, but making the decisions necessary for the betterment of all. Above all follow the rule of law and lead by example.
banker 10 years, 5 months ago
So why are the web shops still open? Shut them down. It doesn't matter that it is before the courts. The law is the law. As Bran says, "Grow a pair" -- but that is impossible for girly-man Prime Minister.
ThisIsOurs 10 years, 5 months ago
I don't trust this administration with new money. It will dazzle their eyes and they will find all kinds of uses for it other than what it was intended for. I agree with Bran, show you can make the most of what you have, cut the wastage, see how much that saves you.
banker 10 years, 5 months ago
It's a dayum shame that Bran lied about being democratically elected to the leadership of the DNA and its a shame that he let that loser Jon Rodgers be his puppetmaster during the election. He sort of has some good ideas, but those two huge missteps make me not trust Bran.
TalRussell 10 years, 5 months ago
Comrade Bran might do well come 2017, if we were looking for some 'Bahamalander idol.' Bran thinks he can sit up in Village Road and dispatch press release after press release as his battle cry to the highest elected office in we Bahamaland. Bran the people want to see what you can do deep down in the political trenches, cause you sure as hell didn't impress many in 2012. Again, grab the leadership of the red shirts, before Loretta beats you to it. After all through rejoining the red shirts you become part of a family much larger than your DNA family. Its a political family of people "set apart" by political reality. They really could use some lite in da darkness left behind by your former boss Papa.
Amen!
john33xyz 10 years, 5 months ago
If you think the FNM is full of "darkness" then don't vote for them. Vote green.
justthefactsplease 10 years, 5 months ago
They had a candidate in EVERY constituency
JohnDoe 10 years, 5 months ago
Bran is a nice enough guy but he is no different from all of the other politicians we currently have on the scene in that they all want to wear the crown without bearing the cross. Has anyone actually read Bran's (DNA) recommendations to save $300 million dollars? The first is to "Reduce the Central Bank interest rate to one per cent". Wow! I don't know exactly what that means but I do know that the only interest rate that the Central Bank controls is the Discount (Bank) rate which is the interest rate at which it lends to banks. This rate has nothing to do with the costs of borrowing for the government, corporations or individuals. The reduction of the discount rate is primarily a monetary policy tool to provide liquidity to the financial system. In fact the Commercial banks are under no obligation to adjust their prime rate just because the Central Bank adjusts the discount rate. Further, how introducing a National Procurement Agency would prevent fraud, waste and corruption to the tune of $200 million annually is almost comical. The one point that he and I are in agreement on is that this government is on pace to be our worst government ever if they don’t get their act together very soon.
banker 10 years, 5 months ago
That's not Bran saying that. That is your too-friendly doltish neighbourhood ophthalmologist who fancies himself as an economist and entrepreneur, and who writes book published by a vanity press read by no one. He wrote the economic plan for Bran and Bran read it verbatim. I attended a speech, and the puppetmaster was eagerly following every word, almost having an orgasm to hear his ideas finally being spewed in a public venue. Unfortunately Bran either doesn't have the depth or take the time to really understand what was being said.
JohnDoe 10 years, 5 months ago
I agree with you and that is why, in my view, he has much work to do before he becomes fit for the office that he covets. In fact the reason why the government has handled the VAT issue so poorly is that when the IMF was peddling its nonsense no one in our government had the wherewithal to put critical questions to them to gain a full understanding of its ramifications. We simply took the IMF's nonsense hook, line and sinker and when the public began to ask critical questions the PM turned around like a little child and cried to the IMF for help to answer the questions as if we have ceded our sovereignty to the IMF.
ohdrap4 10 years, 5 months ago
LOL WHEN THE EYE DOCTOR GROWS UP, HE WILL BE LIKE DIONISION
1voice 10 years, 5 months ago
“The people of the Bahamas cannot afford to permit the PLP to play a game of chance with our future and that of generations that follow, especially while they are unwilling to make sacrifices themselves." I completely agree with this statement. However, I feel that it should be applied across the board. I am of the opinion that Income Tax should be implemented instead of VAT. Let the politicians and other rich people, mostly politicians, put their money where their mouths are. There should be brackets based on salary, wages, employment, etc; similar to the US system. When I can hear a politician put that on the table then I will begin to listen to what any of them have to say.
Stapedius 10 years, 5 months ago
Its so easy for Bran to sit on the sidelines and boo, but leadership is a tough job. I would agree that the PLP has made some really stupid decisions regarding the gaming bill and VAT. But this stupidity is not exclusive to the PLP. The FNM is equally responsible for this mess because like the PLP they allowed government policy to be dictated by these silly NGOs who's only objective these days is to secure the positions of the large industrial countries. They behave as bullies and when we don't behave as they wish they put us on a blacklist or they downgrade us.
When are we going to have leaders who stand up for Bahamians and stop this pandering to these international organization? If we behave as small fish that is what we will be seen as. One of the most damaging things that I've observed from older politicians and public figures is this sense that the Bahamas should know its place. It is a stupid mindset from stupid people. True, we are small in terms of our land mass and our population. It is also true that we rely heavily on Tourism and Banking two industries with heavy foreign influence. That being said, I have heard many Bahamians talk a lot of trash about who we are as a people and our so called lack of resource. If they cannot see that our people is the most valuable resource our country can have then they are blind. Our model of existence must evolve beyond these two industries which have made us lazy.
As a young Bahamian I detest the fact that we seem to accept this idea that we are some small insignificant country. Our politicians must stop with the bull#$*t and start leading and defending us. The many foreign banks and insurance companies in this country get away with serious fraud and harassment. They can't seem to regulate and police these unethical banks yet they want to implement an entire tax scheme. No real expertise in the field, no way to enforce violators and no long-term planning for revenue generation and collection. Its difficult to pay a parking ticket online because the bahamas.gov website always has some issue.
banker 10 years, 5 months ago
We are some small insignificant country, and we have made ourselves that way. The IMF, OECD, G8, G20 etc could crush us like an ant if push came to shove. And who do we blame -- ourselves!
It all stems to economics -- the Golden Rule. He who has the gold makes the rule. We gained independence 40 years ago. We had a chance to do something. We had a Currency Board (instead of a Central Bank) and our currency was fully convertible (take it to any bank or exchange in the world and it could be changed). But the government of the day discovered the actual American Dollars in reserve and spent them like a juvenile in a whore house with a credit card. And when the money dried up, they dissolved the currency board (which had to hold real dollars) and created the Central Bank and the reserve system with phony reserves in the form of IOUs of government debt demarcated in US dollars. With the phony reserves, the government of the day discovered debt, and the downhill slide began.
And then we had the Hotel Corporation. At the time, our tourism wasn't outdated like it is now. Real money could be made by selling just sand, sun and sea. Instead it became a salt pillar of corruption, a sinecure place for political cronies, and source of public money to squander on personal things. It bled ink from day one due to corruption, and yet it could have made money to build a strong Bahamas.
The idea of saying that the IMF is usurping our sovereignty is equivalent to getting yourself deep in debt, having the bank repossess your house and car, and then accuse the bank of conducting a personal vendetta against you and robbing you of your way of life.
Everything that you see now, is self inflicted wounds. They all stem from that fateful day when we began self governance and botched it by trusting a criminal to run the country. He sold us to the Colombian cocaine cartels, instituted a kleptocracy and a culture of corruption, and started the slide from a people with a strong moral compass, to the sweethearting, bastard-child rearing, drug-running, tiefin', lyin' culture that we have today, where there is not one honest man in 100 in public or private life anywhere.
We did it to ourselves. We took the lazy way out and voted for mediocrity and now we have it. So mote it be.
MartGM 10 years, 5 months ago
We'll be like Jamaica in short order where the IMF has to set up shop in our Central Bank to monitor their assets...For all that Jamaica produces and for as valuable as their human capital is (well the employable human capital they have left since the ones who can make a real difference leave and never come back) they're still a heavily indebted country.
When the IMF moves in, you know you're in deep dodo!
proudloudandfnm 10 years, 5 months ago
That really was a dumb statement Perry out about the referendum. Makes me wonder if even knows what VAT is....
digimagination 10 years, 5 months ago
VAT - Vare And Tear on the public!
togon6 10 years, 5 months ago
Yo B. Mac., Heard of the fall of the Roman empire, saw the end of Rule Britania? Why?Leadership, or should I say the lack thereof. Now witness the demiss of the once mighty PLP. After the next election they may well become a third party. Note the long and arduous journey of the FNM. Ask the UBP they fell too, and it is no longer a matter of majority rule. Push on.
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