The Tribune

EDITOR, The Tribune.

Many prior to the introduction warned government that there would be a grave and serious danger of economic business contraction - I ask: Has this become or is becoming a reality?

Two very basic businesses/services - dry cleaning and wash-house indicate that their business has shrunk by 30+ per cent. Now these are two very basic services which if not used means the housewife is now spending more of her time washing at home – having to iron – purchasing clothes that do not need ironing but of course using more BEC which in anyone’s language still is not cheap.

Editor: what is the biggest single revenue item of VAT?

I am going to leave that to your readers to test their awareness but a hint will be that government plans to reduce the cost of this by 30 per cent, their words “soon” - so Editor this highest revenue item of VAT will reduce by 30 per cent – consequences?

In the first six-months, January to June has customs revenue or the value of imported goods dropped?

It would certainly be more than interesting if a survey could be taken across the commercial sector to see whether there is a comparable decrease in retail – wholesale sales? Are these in the region of 30 per cent?

No one is stupid – successive governments failed to collect revenue so as much as they hate the private sector they now 10 per cent rely on the merchant to collect the money to pay for government and fund everything politically as government wishes to do – what irony!

If VAT Commissioner was to speak he would have to confirm this but if the biggest VAT revenue earner will decrease by 30 per cent (let me tell you where...BEC) and across the economic sector also gross business revenue is decreasing how is government going to make up the difference?

Health Insurance premiums for civil service, over $220m is one area on target.

W THOMPSON

Nassau,

June 16, 2015.