The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

VALUE Added Tax is causing much concern among business owners and ordinary citizens in Grand Bahama who believe that government should hold off on its introduction.

Margo Victor, founder of VMI, believes that implementing VAT is “not a positive move” for the country at this time.

“I believe all nations need some form of taxation in order to support society in general. But, I also believe that this form of taxation really creates a burden on the general population, especially after a long and continuing recession,” she said.

VAT will be introduced on January 1, 2015 at the substantially reduced rate of 7.5 per cent from the originally proposed 15 per cent. The new rate will apply across the board, excluding a zero rate for exports.

Business owner Kelley Russell, of H & L Bookstore, said: “I have one problem – it seems they are double dipping. I feel that we shouldn’t be paying Customs duties, but from what they are saying we are going pay Customs duties and then they will charge us VAT on the Customs duties, and then we will still have to turn around and be charged the VAT.”

Bahamians believe more public consultation on VAT is needed. A concerned Freeport resident, who wished to remain anonymous, said many Bahamians still do not understand VAT. “For me ... I don’t know where I stand on it until I really get more information on it,” he said. “I have heard many complaints by ordinary persons on the streets who are also at a loss. Right now, the government is throwing taxes on people and not giving consideration to the situation that many people are faced with, especially here in Freeport,” he said.

The young man said the government should focus its attention on cutting back staff in the public service. “The government has to pay out millions of dollars in pension every year – that is one of the biggest problems,” he claimed. “They (government) need to get their house in order. If you continue to tax the small man he will sink – we catching hell right now.

“Businesses are not making much money in Freeport. People are having a hard time as it is paying bills and other things. VAT is not welcomed,” he said.

A woman, who identified herself only as Winnie, said VAT would significantly affect poor Bahamians. She stressed that people in Grand Bahama cannot afford any more taxes.

“Things are already expensive in Grand Bahama. The government is pushing this on us. People can barely afford to buy food now in the grocery stores and it will get worse once VAT comes on line. I think it is a very bad idea,” she said.