By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
PRIME Minister Perry Christie said yesterday that the government will police food stores across the country to ensure they do not raise their prices without justification as the implementation date for value-added tax nears.
He was responding to a question from a College of the Bahamas (COB) student during an event to unveil his government’s National Development Plan (NDP).
His comments came hours after members of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) held a press conference encouraging business operators that have not registered their businesses for VAT to do so before the November 30 deadline.
The co-chair of the chamber’s VAT task force, Jasmine Davis, told the press that so far 25 per cent of businesses have registered for VAT.
“November 30 continues to be a hard line for businesses that meet the $100,000 threshold for registration,” she noted. “After that, fines and penalties will be levied.”
Penalties for failing to register for VAT, said BCCEC CEO Edison Sumner, include “fines and possible imprisonment according to the legislation. Fines could be as high as $250,000 in monetary fines and it could carry prison terms for those not compliant with new registration, he added.
Mr Sumner noted that he expects there to be at least “another 3,000 businesses registering for VAT in the next two weeks.”
“That does not include the number of those businesses who are not on the register,” he said, “such as the professional services companies who are required to have a business license to operate; so that number could be higher than the numbers we see on the register.”
As for why more businesses have not registered for VAT so far, Mr Sumner cited procrastination, among other reasons.
“Many that we’ve spoken to have said that they are going to begin the process so we are going to see a spike in registration happening as early as this week. A lot of companies just haven’t gotten around to it and some other companies that haven’t taken the time before now to get the information they needed thought that it would’ve been a very onerous process. Many of us in the business sector have already gone through the process; it is a very simple process. And for those getting into it for the first time, they’ll probably spend 20-30 minutes on it and will find that it’s relatively easy to get through.”
He continued: “A part of the reason others haven’t gotten in on it yet is that they just didn’t know how long the process would take, what it entails. And another reason I think the government is facing is that there are many businesses that before now did not require a business license to operate and they are finding that they have to now apply for a business license. That might have slowed the progress down a little bit because they cannot advance the VAT application registration until their business licenses are secured.”
Mr Sumner said he has been assured the government has the wherewithal to accommodate the numerous businesses expected to register for VAT in the next two weeks.
“We expect, of course, that there will be quite a run on the register within the next two weeks,” he said. “The government through the ministry of finance has assured us that they’ve got the facilities in place and the capacities in place to handle the volume of applications that will be coming through the system in the next two weeks.”
VAT will be implemented at a rate of 7.5 per cent on January 1.
Comments
B_I_D___ 9 years, 5 months ago
They can police the supermarkets as much as they want...assuming an item is not 'price controlled' they can charge whatever they want, government has no say in the matter assuming the product is not on that price control list.
GrassRoot 9 years, 5 months ago
I like policing. Police naturalized Bahamians if they open their mouth, police VAT, police supermarkets, that is what we are good at. So who is policing the criminals, the tax cheaters, the corrupt public servants, the police?
duppyVAT 9 years, 5 months ago
Very good points here
countryfirst 9 years, 5 months ago
More lies VAT is a regressive tax.
Islandgirl 9 years, 5 months ago
"Penalties for failing to register for VAT, said BCCEC CEO Edison Sumner, include “fines and possible imprisonment according to the legislation. Fines could be as high as $250,000 in monetary fines and it could carry prison terms for those not compliant with new registration, he added." Please remind us of what the penalties are for MPs for failure to disclose assets/financials? For insider trading? For squandering the public purse?
GrassRoot 9 years, 5 months ago
Islandgirl you are in the wrong business. Consider a career change to the numbers boys' (n girlz) or as you point out, run for office.
ohdrap4 9 years, 5 months ago
what they should police is the shipping costs at arawak port development
but i also find it amazing that someone in the audience could not point out that only price controlled items can be policed.
proudloudandfnm 9 years, 5 months ago
So if I don't register for VAT I can go to jail. But a PLP stalwart can refuse to pay his taxes for 20 years and he gets a huge salary as government financial consultant.
Dayum! Dis one messed up country!! PLP gots to go man.
I will vote for any party that can convince me they will immediately repeal VAT.
GrassRoot 9 years, 5 months ago
I wonder whether jail services are subject to VAT too. So watch it, going to jail may result in a VAT invoice sent to your loved ones.
proudloudandfnm 9 years, 5 months ago
When will Perry realize he is the worst PM of our entire history? When will pure embarrassment send him running? Lord knows I could not live knowing I was the worst at something...
ThisIsOurs 9 years, 5 months ago
Dr Myles Munroe spoke of it best as reported by Candia Dames, he had a dream of a man in a casket holding onto the baton...I guess that's your answer
asiseeit 9 years, 5 months ago
The main organization that needs a watchdog and policing for ripping off the Bahamian people is none other than our CORRUPT GOVERNMENT! I wonder how it must feel when 90% of the people perceive the organization you run/are part of as a thief and corrupt?
The_Oracle 9 years, 5 months ago
For the last 40 plus years the Government has always had an adequate stick to wield against unlawful behavior and non payment of taxes and fees, duties. But instead of learning how to apply that stick, they have opted to gain a bigger and bigger stick instead of learning how to administer with the one they have. Welcome to the police state, where the Authorities persecute, prosecute and destroy at will all those who do not comply, not just with the law,but with their personal whim and demand. Each will have their own little power play, dept. by department. The days are coming when looking a Government minister/dept. head in the eye will get you jailed! A well worn path the world over. Government justify this progression which is caused by their own inability to govern under rule of law. So they will govern by force.
asiseeit 9 years, 5 months ago
^^ very well said ^^. Not far from a dictatorship. The Bahamian people better wake up!
EasternGate 9 years, 5 months ago
Perry is so full of shit that his hair is brown. That is why he has to dye it black. What in the hell can Perry and the PLP police. I am waiting with "bated' breath to see him force Jones Communication and Mario's to pay Government arrears and sign up for VAT.
duppyVAT 9 years, 5 months ago
All of these issues are now sadly forgotten in this PLP smokescreen. They throwing so much shit at us that we dont have time to breathe!!!!!!!!!
TheMadHatter 9 years, 5 months ago
Of all the reasons this clown from VAT listed - he forgot the main one - you have to have all arrears paid on business license, NIB, property tax, corporate registration fees, business name fees, etc - before you can register for VAT.
Nobody has money to pay three years' worth of fees if they are that far behind.
I guess they need to close-up or go to jail.
We might see plenty businesses closing before year end, or we might see plenty VAT enforcement officers driving BMW. One or the other.
TheMadHatter
ohdrap4 9 years, 5 months ago
if the business license is current, you get the vat registration they will withhold your refunds to pay the rest of the stuff later
John 9 years, 5 months ago
THE SIMPLE DEFENCE TO ANYONE CHARGED FOR NOT REIGSTERING FOR VAT PRIOR TO DECEMBER 31 ST: " Your honor, I do not plan to be in business come January 1, so I did not register for VAT." There's no rule, no law, no regulation that says you can't come back. So I have every right to come back". Lance Armstrong. Using taxes to punish the rich, in reality, punishes everyone because we are all interconnected. High taxes and excessive regulation and massive debt are not working.
Rand Paul add to that corruption and government wastage! Rogue economics is a sort of umbrella under which we find the criminal economy, the illegal economy, but also those gray areas, gray areas where there is not a proper regulation, where there is not legislation for the economy.
Loretta Napoleoni
John 9 years, 5 months ago
READ BETWEEN THE LIES: It is not the Bahamas Government that is pushing for VAT. It is the international community. The US government, The IMF, The world bank. VAT is not just a tax, it is a tracking system to know who owns what, who they do business with, where they keep their monies, where they spend it..etc. So those foreigners, US citizens especially, who have assets hidden in the Bahamas will be uncovered eventually. Uncle Sam is gonna get ya a$$!
ThisIsOurs 9 years, 5 months ago
How late can you be? The prices are already up. They've been creeping while you were busy not policing
John 9 years, 5 months ago
Prices are up not because of VAT but the cost of doing business is up. Despite all the blackouts and damages to equipment, and the lowest price for oil in a decade, BEC bills are up 10% over last year. Labor costs for food stores have increased because they will no longer hire persons with questionable status. The price of orange juice has increased almost 50 percent and lamb chops have more that doubled from $1.99 a pound to $4.79. Add another 7.5 Vat to these come January 1 and its back to noodles and sardines for most of the country.
ThisIsOurs 9 years, 5 months ago
Stay under the tin foil hat if you want to
duppyVAT 9 years, 5 months ago
Tin foil will cost too much to buy soon. Use grape leaf.............
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