The Tribune

EDITOR, The Tribune.

Without question tourism is the number one attraction of The Bahamas.

After many many years I still marvel at the beauty and clarity of our waters. The Bahamas is blessed to have such an asset but we cannot claim to have created it, in fact it seems that today, in several cases, we are trying to destroy it!

However, I do not wish to focus on the environmental issues at this time – they are already well covered in the Press.

On the other hand, I do wish to focus on another Bahamian asset which is something we can proudly boast to have created - namely talent.

For a population as small as ours it is astonishing at the level and diversity of Bahamian talent that has been generated – e.g. sports and the arts are two well-known elements.

Among these talents there are also some very well-educated and articulate professionals but for most of the time this segment of talent is not well recognized to the point of it even being overlooked.

Why is it that opinions and recommendations from other bodies/persons from various parts of the world are considered to be more acceptable? Input from the local talent “pool” has to be more valuable than input from other parts of the world – including New Zealand!

Our local people live here and know how the system works, including the practices of corruption, protectionism and cronyism?

By far they are in the best position to assess what will work and what will not work.

When VAT was first introduced into the public arena there was a great hue and cry about the adverse scenarios that would be created.

It immediately caused a furore of criticism to which the Government responded by saying that criticism for the sake of criticism was not acceptable and Bahamians were challenged to put forward constructive alternatives.

The challenge was readily accepted and several groups put forward a variety of alternative and well-reasoned ideas.

Did the Government listen? “No” just like it ignored the referendum on the regularization and operation of web-shops.

Nonetheless the Government did become concerned with the breadth of the continued criticism that it decided to hire consultants from one of the external regions in the world (a region that could not be much further away from the Bahamas) – i.e. New Zealand.

The consultants duly came and reviewed the Government proposals but fortunately they did not “rubber-stamp” them and suggested better ways of approach.

One of the criticisms outlined by the New Zealand consultants was the fact that there were far too many exclusions – in other words there were more exclusion holes than a lace curtain.

With the recent re-presentation of VAT this area of exclusions seems to have been addressed by the Government stating that VAT will apply to almost everything.

The Government in their wisdom has also recognized that to start with a VAT rate at 15% would not be well received and has therefore have lowered the rate to 7.5%.

In order to offset the estimated reduced tax revenue due to the lowering of the rate, the Government has decided not to reduce Customs Duties to the same extent as previously planned. The end net result is thought to be about the same.

How can this be? Where is the logic?

It was clearly announced that 7.5% VAT will be added to the electricity bills.

Electricity in the Bahamas is one of most expensive utilities in this region of the world. Furthermore the Corporation has one of the worst accounts receivable for delinquencies. If BEC was run as a commercial business it would have been in liquidation many years ago!

However, if the Government cannot currently collect its electricity bills then why add another 7.5% to the bill? – it simply does not make sense.

It is publicly and widely known that there are many “protected” customers who do not have their electricity disconnected for non-payment.

In fact the BEC Chairman recently and openly stated that he was leading a charge not to have the Corporation carry out mass disconnections.

What example does this set?

Maybe when the 7.5% VAT levy is introduced none of us should pay our electric bills as we know there will be no punishment for non-payment!

This syndrome of protectionism and cronyism for non-payment of any and all bills has to be changed immediately.

For example a company like Jones Communications to say that the public leak of the company’s outstanding electricity debt was an invasion of privacy and politically motivated is outright nonsense.

What is matter with the adage of “Name and Shame”?

The real problem is the fact that many of these people have no shame (?) – they really believe that their illogical utterances put them above the law.

If the revenue from VAT is going to work in any meaningful manner then (i) the Government must lead by example and stop this protectionism of the aforementioned chosen persons and (ii) reduce the level of VAT to be imposed on electricity and other basic utilities – why not try 1.5% or 2%?

As mentioned above the reduction of VAT exceptions is a start but by the same token a flat VAT rate does not have to be applied across the board.

As a quick and easily referenced example look at the UK where VAT is levied at a general rate of 20% however only a VAT rate of 5% is added to electricity.

Cannot the Bahamas even learn from other countries?

As stated at the outset the Government of the Bahamas chooses not to recognize the constructive proposals put forward by its own people.

Are we ashamed to acknowledge the skill sets of our own talent?

FAIR and

BALANCED CITIZEN

Nassau,

July 28, 2014.