The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

FNM Chairman Darron Cash criticised the Christie administration yesterday for failing to bring the value added tax bill to Parliament with its accompanying regulations and proposed tariff schedule in “an appropriate time-frame”.

In May, a government official indicated that the VAT bill would be brought to Parliament in June.

Mr Cash said Prime Minister Perry Christie should have delivered the VAT bill and other important information related to tax reform by the time he wrapped up the recent budget debate in the House of Assembly.

“With six months to go before his government’s introduction of its back-breaking value added double taxation programme, the Prime Minister and Minister of Finance Perry Christie has yet to present to Parliament the VAT bill, regulations and the proposed tariff schedule. The prime minister is running out of time and the delay is likely to be harmful to the effective implementation of the new tax,” he said.

Mr Cash drew parallels between the government’s delay in bringing forth the VAT bill and its delay in bringing forth the long-awaited gaming bill.

He said: “With the delay in introduction of the webshop and gaming bill delayed because of the Christie government’s startling epiphany that they should consult the international agencies concerned with anti-money laundering, the FNM wonders whether – in addition to pure incompetence – a reason for the delay in VAT is because of the government’s pressure to increase VAT-related government revenues now that even the paltry $12m from webshops is in question.”

The government has projected a $12m intake in revenue from the planned regulation of the webshop sector.

“Whatever the real reason, the Christie government’s typical inability to deliver anything it promises within a reasonable time frame could have harsh economic consequences,” Mr Cash added.

“It is unreasonable to expect that substantial VAT-related initiatives will be implemented in December when the business community will be at the height of their peak income generating season. The extent of VAT-related progress in the summer, peak vacation, months is also questionable. In essence, the government will appear to face the reality of presenting the public and business community with final VAT documents with less than four months before implementation date on January 1, 2015.”

VAT is expected to be introduced on January 1, 2015. The government had initially planned to introduce VAT on July 1, however delayed the start of the tax until next year.

New Zealand VAT experts, who advised the government in April, have said that a strong education programme and clarity about the details of the tax are crucial to its successful implementation.

Attempts to reach State Minister for Finance Michael Halkitis and Financial Secretary John Rolle were unsuccessful yesterday.