The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The BAHAMAS Hotel & Tourism Association’s (BHTA) president believes the Prime Minister’s promise of a lower Value-Added Tax (VAT) rate and possibly delayed implementation date is a “welcomed indicator” that the Government is considering private sector’s concerns over the economic impact of fiscal reform.

Stuart Bowe said, however, that the hotel and tourism industry remained concerned over the implementation date of VAT or any new tax.

“We are pleased with the heightened level of private sector engagement, and the consultative approach that the Government has maintained with the private sector,” he added.

“The decision to reduce the original 15 per cent VAT rate and change the implementation date of July 1 is a welcomed indicator that the Government is considering our concerns about the economic impact of enacting VAT as previously proposed.”

The BHTA president added: “We remain concerned about the implementation date for VAT, or any new taxes. The public and private sectors should be engaged now, working together on plans and contingencies for the proposed changes.

“This includes training, identifying potential point of sale equipment and software modifications, and determining the administrative and systems support necessary to ensure readiness.. We’ve indicated to the Chamber of Commerce and the Ministry of Finance that this should be a point of formal collaboration now.

Mr Bowe continued: “Both the public and private sectors should be provided with sufficient time to be educated and prepared in order to ensure that any new tax model has the best opportunity to achieve its fiscal goals.”

During his closing remarks in the Mid-Year Budget debate last week, Prime Minister Perry Christie confirmed that VAT would be introduced at a lower rate than the initially proposed 15 per cent, with the implementation date also subject to potential change.

“As to the rate of VAT, I can assure you that it will not be as high as 15 per cent,” said Mr Christie. “I can assure the Bahamian people that when we put the final package together, the rate will not be 15 per cent.

“The actual rate is not settled yet, although I expect it will be in the very near future, along with the final list of exemptions as well as the date for the introduction of VAT.”