The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemeda.net

Bahamian businesses are complaining about “significant delays” in receiving Value-Added Tax (VAT) refunds, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman yesterday warning this threatened to undermine private sector trust in the Government and its new tax.

Gowon Bowe, who addressed the Rotary Club of West Nassau, said: “I do know that from the business community perspective there are some challenges that are coming up.

“Some of the Chamber members have indicated, those who are in refund positions, that they have experienced significant delays in getting the refunds, which is one of the areas that the business community said - in terms of confidence and trust - there had to be a swift response when you had the refund situation. I think they need to address that.”

    Mr Bowe added that while consumers have, for the most part, adapted to VAT, the underlying public concern is what the Government is using its new annual $300-$350 million revenue stream for.

“I think you see the sentiment coming back that there is nothing being said about what is happening with the excess cash. We are still hearing about challenges in terms of government meeting payroll and obligations once they become due. What is happening with the funds and what are they being used for?” Mr Bowe asked.

He added that while the Chamber’s Coalition for Responsible Taxation had been vocal in expressing the concerns of the private sector prior to VAT implementation, there was still a need to continue with this message.

“As it was in the implementation, there is probably a need for private sector push back to bring these issues to the fore, so it’s not a simple exercise of complaining in the background,” said Mr Bowe.

  “Businesses have a lot of issues that they have been struggling with. While VAT may not have put them in a wind-up mode, so to speak, the economic factors, along with VAT, along with some of the challenges we face with energy costs and other things, are putting businesses in the red and persons are not able to sustain growth long-term.

“The Government has to look at that because when you talk about doing business and the ability to build and grow the economy, we have to be in the mindset that we are facilitating that environment.”