The Tribune

The Government will strengthen the Consumer Protection Department to ensure Bahamians are not exploited by businesses illegally collecting Value-Added Tax (VAT) from their customers, Ministry of Finance official Lucine Mingo told teachers at Government High School recently.

The Bahamas has more than 30 departments and agencies collecting a variety of taxes and fees, and Mr Mingo said this has created a culture of poor communication between agencies, resulting in the inefficient collection of government funds.

“If Customs knows that you’ve brought in $100,000 worth of imports, but then you have reported to the Business Licensing department that you have had a turnover of $50,000 for the year, which doesn’t make sense, you were able to get away with that because the two agencies were not speaking to one another,” he said.

While Mr Mingo admitted that compliance with the law for major taxes and fees is often weak, he said the Ministry is making every effort to plug the holes in the system.

The establishment of the Central Revenue Agency (CRA), he added, will ensure compliance with tax legislation and ease the burden of policing the 4,000 businesses and vendors collecting VAT on behalf of the Government.

“Our new officers will be going to each one of these businesses, letting them know what will be expected of them,” Mr Mingo said. “VAT will require greater discipline from the business community, but will eventually mean improved infrastructure like schools and healthcare, along with enhanced social safety nets for the general population.”

The new agency will be responsible for collecting VAT, Stamp tax, real property tax, Business Licenses and taxes, hotel occupancy tax, casino tax, and some bank and trust company fees.