By RICARDO WELLS
FNM Shadow Finance Minister Peter Turnquest yesterday blamed the government’s poor education campaign for the slow registration of businesses for value added tax (VAT).
Mr Turnquest claimed the government’s “cookie cutter approach” to implementing the new tax has derailed the registration process for many business owners, adding that there is a “serious lack of understanding by the public” over VAT.
“If government wants to be successful in this process they need to properly educate the public and businesses.
“The business owners need to know what they need to do to register, why they need to register and how their businesses will be impacted,” Mr Turnquest said yesterday.
State Minister for Finance Michael Halkitis stated last week that of the 4,500 businesses required to register to collect/remit VAT, only 295 have complied so far.
Mr Halkitis stated that there was concern that those businesses that are mandated by law to register may not be ready by January 1.
Mr Halkitis added: “Our deadline for registration is November 30, but businesses have until the end of the year and the beginning of next year, if it is needed to register, but we are hoping it will not come to that.”
When contacted by The Tribune for comment on the slow registration yesterday, the East Grand Bahama MP blamed the Christie administration for poor oversight.
“The fact that the registration process has garnered such poor response, to this point, is a symptom to the fact that the pre-education campaign is so poor,” he said.
Mr Turnquest said that the entire VAT process has been “rushed” by the government. He added that the education has been “non-existent”.
“Owners and managers need to know what all their companies would need to make it VAT ready.”
“That means real education has to take place,” he added.
He recommended that the government introduce extensive VAT forums that would “iron this process out” by supplying all necessary information.
“What we don’t want is persons to come to a realisation (on) January 1 that they have no clue how their businesses should be operating with regards to VAT.
“The government has a lot of work to do to make things clear.”
According to VAT regulations, a taxable person who fails to register faces a maximum fine of $100,000 plus a year in prison.
The regulations also allow a fine of up to $50,000 or a prison term of up to two years for wilfully evading VAT.
Comments
ohdrap4 9 years, 6 months ago
for import retailers, vat is not complicated on any items for which duty was not changed, and the virtual ware house was created for them.
insurance was given extra time to prepare.
but real estate agents and medical services under insurance were not giving extra time to change their pricing strategy.
For medical care specifically, it will lead to many doctors collecting the full amount , rather than a copayment, then send patients to collect with the insurance companies.
Islandgirl 9 years, 6 months ago
They seriously need to reconsider VAT on private health care. If public is free of VAT, then private should be also. When Bahamians go abroad to seek medical care, are they going to charge VAT on them when they return? Demand to see their bills to add the appropriate VAT when they re-enter the country? What about for tests not available in the public sector, which are referred to the private sector? Persons will die from inability to pay. Health care is an ESSENTIAL SERVICE., already expensive and about to get even further out of reach. Instead of the hours waiting to see a public doc, we can now look forward to days. I bet the "governing party" did not even stop to think about that. You would think at least Halkitis would, considering he married a doctor and would have access to greater insight here. Christie and company are killing this country. These junior achievers need to go!
afficianado 9 years, 6 months ago
Junior achievers lol...I'm weak
ohdrap4 9 years, 6 months ago
No. it is not free to all members of the public, only those listed below. Furthermore, glasses and hearing aids are vatable.
From the Finance website:
duppyVAT 9 years, 6 months ago
VAT is a poor choice for the country period. It is a lazy way for the government to collect tax that it doesnt have the stomach to collect itself..... as it is doing a poor job of collecting the present taxes on the book now.
Perry/Government................Dont beat the private sector with a stick that YOU are not willing to apply to your own ass.
proudloudandfnm 9 years, 6 months ago
I hope businesses don't register. This may be the only way to stop this incredibly bad idea. A national "Do not cooperate" protest movement....
RTStorm 9 years, 6 months ago
A lack of education and a “cookie cutter approach" is not the main reason for the slow registration. Businesses and consumers simply DO NOT want this Tax. Simple! For businesses this tax is costly to implement and maintain; for consumers it will cost them a small fortune at the cash registers. No sane person is looking forward to a drastic increase in the cost of living - accept maybe those with the keys to the Public Treasury.
The_Oracle 9 years, 6 months ago
If the Government hacks would stop Flip flopping when asked serious procedural questions by Private sector concerns wanting to comply they might actually gain some respect and cooperation from the private sector. As it stands now, there is some freelance "interpretation" going on by their own "Team" created by their own ignorance. Not that their team brings any credibility to the table, being a few marginal accountants and far too rapidly promoted Customs officers. It is the private sector which will police and collect for them, via a desire for self preservation! Not giving the private sector one straight sensible story and set of rules is like playing soccer with goal posts on wheels and a square ball! The VAT inspectors will just roam around like the VAT M'coute with clubs, kinda like price control on steroids. After all is said and done, we will all pay for the Governments debts and their botched VAT job so instead of creating an enemy out of the private sector the Government should be begging for their input and help.
B_I_D___ 9 years, 6 months ago
Definitely...from the get go, they did not want to hear or listen to ANYTHING the private sector had to say. It will be the same old routine, the honest businesses...the ones who were very vocal and wanting to discuss and provide feedback on VAT, they are the same ones that will be bending over backwards to comply with this mess, because they know if they step out of line one fraction of an inch, your 'M'coute' will beat them over the head with a sledge hammer...all the while turning a blind eye to the indiscretions of their friends, family and affiliations...from the word go, there should have been open and cooperative discussions...not just the we are going to ram it down your throat whether you like it or not approach...we are after all going to be the governments tax collector...you better play nice with your henchmen or they can betray you very easily.
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