FREE National Movement (FNM) Chairman Darron Cash yesterday raised concerns over the new taxes that the government will implement to compensate for the delay in the introduction of Value Added Tax (VAT).
In a statement released yesterday, Mr Cash criticised the Christie administration’s “reckless” management of the economy and urged the government to further cut public spending in the upcoming budget.
The 2014/2015 fiscal year begins on July 1. Prime Minister Perry Christie is expected to make a budget communication in the House of Assembly on Wednesday.
“Having failed to deliver Value Added Tax, or any other meaningful tax reform measure, the prime minister will almost certainly try to announce some other set of taxes to compensate for the foregone VAT income,” Mr Cash said
“The problem is that having run out of time to do things properly, the grave concern is about the extent the government will make desperate and ill-considered tax moves to generate income in the short term. If the prime minister fails to outline a set of meaningful and well-considered revenue enhancement and cost-cutting measures, his budget will rightly be regarded as a splendid work of fiction.”
Last week State Minister for Finance Michael Halkitis said although the government has delayed VAT, there will not be any “significant new taxation” in the new budget aside from possible new taxes on web shops.
He told a reporter that the government is looking to raise revenue from increased taxes on web shops and maybe auctioning a second mobile service provider licence to the highest bidder.
Still Cash said the government must demonstrate its commitment to cost-cutting measures in the new budget.
“The delay in meaningful tax reform means that it is even more important for this administration to place emphasis on strategically and carefully reducing spending,” Mr Cash said.
“. . .To be clear, this means much fewer foreign trips, fewer new cars, fewer self-serving, exaggerated, fictional glossy magazines about ‘accomplishments’ that don’t exist and fewer padded contracts for pet projects.”
Earlier this month Mr Halkitis forecast that the government might get requests for more money from several key ministries.
Mr Halkitis said that while the Ministries of National Security, Health and the Department of Social Services might request more funding than in the last budget, it was still the government’s aim to ensure fiscal prudence.
He could not say specifically if increases would be approved across all ministries.
The government initially proposed to roll out VAT on July 1 at a rate of 15 per cent in most cases. However, earlier this month, Mr Halkitis confirmed that VAT will be delayed, however, it is unclear when the new tax will be implemented.
The prime minister has said that whenever VAT is introduced, it will come in at a lower rate than initially proposed.
Comments
birdiestrachan 9 years, 10 months ago
It is much to bad that Cash did not have this advice for his FNM Party., After all it is his FNM party that has the Bahamas in the dire financial straits that we are in. So it is beyond me as to why he is making these statements and especially when the Bahamian people were feeling so very proud of the relay games held in the Bahamas. I suppose he was trying his best to sow sour grapes.
By the way Mr. Cash do you have any more information about BOB that you would like to release at this time?
Cobalt 9 years, 10 months ago
Agreed. However, both the fnm AND the plp are responsible for the nation's financial straits. Both have done nonsense. And don't forget about the Bahamian public. We're also to blame for the state of our nation.
stillwaters 9 years, 10 months ago
I'm hoping that the staff at the tribune reads these posts....... because I'd like to know whether there is any other news you can print everyday except the utterances of politicians from both parties..... none is better than the other to me. IS THERE ANY OTHER NEWS??? PLEASE!!!
TalRussell 9 years, 10 months ago
'Tis some things the reds are publicity shy about. Comrades Stillwaters what readers can be assured not to read off the pages of this hereto Tribune, or ever hear come out the mouths of the red Chairman's, Minnis, Loretta or Dr. Duane, or for that matter any other red shirts mouths, is that this same PM Christie who confessed he went a looking all over Nassau Town for he buddy and former trusted law partner Papa, is the same PM who sanctioned the appointment of the former reds environment minister, the Honorable Comrade Earl, to make sure that all projects going on within we Bahamaland are being carried out in a way that meets environmental standards; this also INCLUDES the Resorts World project underway on the island of Bimini.
Tarzan 9 years, 10 months ago
I agree with the many posts that suggest that these patently partisan utterances from our political class are not only a waste of our time, but are hardly news. However, let us not give the electorate a pass here. How has every election since independence been decided?
Based on mature, measured recommendations for programs that anyone (and I mean any informed voter) could possibly believe actually had any chance of enactment and/or of producing a salubrious result? Clearly NOT!!!
What did the PLP use to secure its most recent election victory (besides the pure luck of having a breakaway FNM faction to divide the vote)? Billboards blaming the serving government for the crime epidemic that the PLP has done precisely NOTHING about. A plague that the serving PM now wishes to "de-politicize". A phony suggestion that somehow the gaming shops could balance our budget without any economic pain to be suffered by anyone. Really?
Tal takes the FNM to task for not addressing the myriad issues the country faces, including the structural budget deficit problem which has been our lot, since independence, and that is fair criticism. But what party (certainly even Tal cannot credit the serving PLP government) can address serious issues in this country, with serious (read "hard and likely unpopular" decisions) and expect to be re-elected.
We are getting just the kind of huffing, puffing, do nothing, nincompoop government our electorate deserves. We vote on emotion, and we reap drivel designed to offend no one, which will produce no remedy. We get just what we deserve.
TalRussell 9 years, 10 months ago
Comrade Tarzan your enlightened post highlights the very seriousness Bahamaland finds herself in as a nation today. I invite all our fellow Comrades regardless of colours of shirts, to follow the example set by both you and I, who understand the seriousness we as a peoples face, by refusing to engage in petty politics with our posts.
Purcell 9 years, 10 months ago
Collect the unpaid property taxes instead of introducing any new ones. Problem solved.
TheMadHatter 9 years, 10 months ago
The financial situation is caused by the lack of immigration bus raids. One Swiss banker put an end to all of that. Wow. Now we must pay for it in new taxes.
TheMadHatter
Reality_Check 9 years, 10 months ago
If Minnis had a decent set of gonads, this clucking waddling duck Cash, who has had his wings clipped but good forever when it comes to politics, would be banished to the politics-free wilderness where he belongs.
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