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The Consequences Of Vat Are Real

By JOAN THOMPSON

Nassau Institute

Ishmael Lightbourne, consultant to the Ministry of Finance, in an ad hominem attack on the Nassau Institute describes the research report, ‘Consequences of the Value Added Tax for Bahamas’, as being “extreme, ridiculous, exaggerated and inaccurate”, and is being read because it “bashes” the Government.

Mr Lightbourne also accuses the Institute of promoting ideology he describes as “spending cuts to reduce the size of government and slashing the fiscal deficit”. Pity governments of both political parties failed to foresee the consequences of reckless spending and the ever growing public debt. There may now be concerns about the creditworthiness of the country’s debt among the lenders. The increased risk attracts higher interest rates for the lenders, and the likelihood of lower living standards for the borrowers, the Bahamian tax payer.


As for the statement “it is only being read because it ‘bashes’ the Government”, Mr Lightbourne may not know that businesses across the country are reducing hours of employment, cutting margins, trimming expenses and other measures to compensate for currently reduced economic activity and ever-increasing costs.

The Economic Consequences of the VAT are real and every business and retiree needs to know how his life, his company and his bank account will be affected by the Value Added Tax (VAT).

Bashing government may be an outlet for genuine fears and frustrations. Who would blame them?

Comments

The_Oracle 6 years, 4 months ago

A paid Consultant is going to tell the payee what he wants to hear, especially if the payee is incompetent. (Government) Mr. Rolle and the consultants (from British Customs consultants to Caribbean Trade consultants) have been indoctrinated by the IMf, WTO, IDB, OECD, the EU trade delegation as Mr. Rolle was attached to the IMF organization for some time. The Government has its fiscal back against the wall, but no one has taken away their credit cards. They keep buying the "people" with Free this, Free that, Free Health care, Free Meds, and employing more and more unqualified people to dole the freebies out. No one stops to think how much all this free stuff will cost them.

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Reality_Check 6 years, 4 months ago

Isn't this the same Ishmael Lightbourne who was fired from one of the big international accounting firms in 2004 for stealing millions from its clients which he then stupidly invested in bogus Nigerian schemes that parted him from his ill-gotten stolen wealth? The U.S. government (FBI) has had the "goods" on Lightbourne's nefarious background for years.....and they have been scratching their heads in disbelief that the Bahamian government appointed him for a spell to the World Bank and now have him on the Ministry of Finance's payroll through the Office of none other than our Prime Minister, Perry "Vomit" Christie! No wonder we can garner little or no respect in the international financial arena, especially when it comes to the U.S. If the Bahamian government is employing known thieves, then the country fully deserves to be paying much higher rates of interest on its foreign currency borrowings.....it's really as simply as that!!

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ohdrap4 6 years, 4 months ago

The consultants sing for their supper.

Hey, hey, tomorrow is the first of October, Minister Halkitis said that the VAT legislation is coming out his week.

Now, if the VAT was a disaster in Grenada, how come we have Grenadian consultants?

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John 6 years, 4 months ago

Don't be surprised if you see rioting in the streets just a few short months after VAT is introduced in the Bahamas. You are talking about a 15% increase in cost of goods and services which will have more impact on persons who already cannot face the cost of living. So basically government is taking more money from poor people who had job security and full employment during the entire 7 plus years of the recession. You ate talking about companies in this country that haven't made profit in many years not having to increase the cost of doing business by hiring accountants and other personnel just to keep up with the VAT requirements. Many will fail or chose to close rather than be saddled with this extra burden. Recently government passed tobbacco tax laws that made it a criminal act to sell retail cigarettes, doubled the price on the pack of cigarettes while impacting the price of a good cigar by less than 50 cents. This VAT msy be the tax thst breaks the camels back and poor Bahamians will revolt.

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