The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Christie administration is setting a “dangerous precedent” by effectively overruling the decision of the Bahamian people and forging ahead with legaliaation and regulation of web shops, the FNM Opposition charged yesterday.

K P Turnquest, the opposition’s shadow finance minister, said the Government’s decision to make the taxation of web shops retroactive to July 1 raised “fundamental issues”.

He added: “The Government has indicated that it will legaliae the numbers business in the face of the Bahamian people’s instructions not to proceed. The Prime Minister indicated that taxation would be retroactive to July 1.

“That means that any activity prior to that, the operators of these web shops get way with free. Fundamentally I believe there is an issue there. Certainly I think it is something that will come up in debate when the time comes.”

During his 2014-2015 Budget communication yesterday, Prime Minister Perry Christie confirmed that not all web shops would be legalised.

He said: “After extensive and due consideration and discussion, we are moving forward with the regularisation and taxation of web shop operations in this country.

“Conservatively, we expect this to provide a revenue intake of some 0.14 per cent of GDP in the next fiscal year and beyond.”

Mr Turnquest responded: “Given the size of the industry bandied about, I wonder whether that number is reasonable. We will leave it there until we have further details.

“It is a significant statement the Prime Minister has put on record that he is going to overrule the voice of the Bahamian, and that’s a very significant statement. I don’t know if it has ever happened before but it’s a very dangerous precedent.”

Mr Christie said the regulatory and taxation regime that will be introduced for the webshops will feature “very stringent and demanding standards” in terms of levels of controls and accountability.

“To that end, the Government has engaged international experts who will advise on an appropriate policy and legal framework for the sector. I also wish to advise that the taxation of the web shops will be retroactive to July 1, 2014,” he said.

In January 2013, the Government held an ‘opinion poll’ on whether to regulate the numbers industry. That was rejected, and Prime Minister Perry Christie subsequently announced that all web shops must close with immediate effect.

Web shop owners, however, filed an injunction to block any move by the Government from interfering with their operations. The substantive case has not yet been heard.