The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Any further tax increases will have “an undesirable effect” on the most vulnerable segments of Bahamian society, the FNM’s deputy leader has warned.

K P Turnquest told Tribune Business: “Bahamians are not under-taxed; they are inappropriately and disproportionately taxed. Any further increases in taxes in any form will have an undesirable effect on the most vulnerable, the ones this government promised to help. Instead, they have failed to produce promised jobs and reforms, and increased taxes contrary to their election commitments.”

“With respect to VAT and now the looming National Health Insurance (NHI), we have to be careful that we do not overburden the private sector all at once. Businesses will react to perceived threats to their bottom lines and cut costs to accommodate any increases that cannot be passed on to the consumer, who will feel it in the end,” he added.

Prime Minister Perry Christie said last week that between 7,500 to 8,000 additional jobs will be added to the Bahamian economy in 2015, via projects set for Grand Bahama, Bimini, New Providence, Andros and Abaco.

“No doubt the Government has put most, if not all of its eggs, in the Baha Mar basket, even as the deputy prime minister seems to be at an impasse on the road cost negotiations, which he has now taken public in an unprecedented fashion. Hopefully all will be resolved amicably and without disruption to the launch and the impending hirings anticipated,” said Mr Turnquest.

“Further job projections seem to be somewhat speculative for 2015, at least given that we are almost through the first quarter but, of course, we may be unaware of the status of other developing situations.”