By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A leading food retailer said the Government eliminated the Value-Added Tax (VAT) “nightmare” by drastically reducing the proposed exemptions, adding: “We have the best VAT in the world.”
SuperValue’s owner and president, Rupert Roberts, said the elimination of most VAT exemptions had prevented potential disaster. Under the Government’s initial proposal, between 75-80 per cent of food store inventories would have been treated as VAT ‘exempt’, meaning retailers would only have been able to recover 20 per cent of the tax paid on their inputs.
“I think we worked out the best VAT in the world,” Mr Roberts said. “I believe we have a better VAT than New Zealand. Surely the New Zealanders saw their mistake 30 years ago and corrected them in our VAT.
“The public has to pay 7.5 per cent, but after that it is a perfect VAT. We couldn’t have arrived at anything better.”
Mr Roberts added: “The Government had initially suggested all sorts of exclusions, and then they dropped those and made it easier for us to put in our returns.
“We imagined a nightmare. They were asking us to do something impossible, but when they changed it, it was a dream come through. We could put our VAT returns in in our sleep. All we do is take our information at the end of the month and remit it to Government with our cheque. The process has been very smooth.
“We got over that big hurdle. We got what we want, and the Government got what they wanted. I have heard rumblings of changes. I hope that Government is smart and leaves it alone. I don’t think there is really much to be improved.”
Comments
Sickened 8 years, 7 months ago
The only change coming is an increase in VAT. Hopefully its not an increase to 15%.
proudloudandfnm 8 years, 7 months ago
So Rupert gone back to the PLP again???
LOLOLOLOLOLOLOL!!!!
jackbnimble 8 years, 7 months ago
Actually I was thinking the same thing. LOL!
watcher 8 years, 7 months ago
Surely the best VAT in the world, is no VAT ?
B_I_D___ 8 years, 7 months ago
AMEN
proudloudandfnm 8 years, 7 months ago
They better eliminate duty before they talk bull about a raise in VAT.....
OMG 8 years, 7 months ago
Amazing, it was the politicians who overspent over the years and put us in this position and now they are saying they can fix it. This 7.5% ??? Just imported two trailer rims with tyres. Cost ending up 100% on top of purchase cost when vat ,shipping etc are added. Also we are actually paying 8% in the shops.
g9822033 8 years, 7 months ago
I would support a 15-20% VAT across the Board on everything in lieu of customs duty. The government will soon have enough data to figure out where the sweet spot is for a VAT rate to compensate for the elimination of duty.
Sickened 8 years, 7 months ago
The problem is though, we will still have to open our suitcases and show receipts every time we come into the country. That is such a hassle. They need to let Bahamians with nothing to declare use the tourist line. I travel a lot for business, and usually only have a carry on, but I still need to wait behind a line of people who have 5 bulging suitcases each. That aspect needs to be improved.
The_Oracle 8 years, 7 months ago
As a large business he has no doubt been "under review" as have other large business concerns for accurate and timely collection and remittance. Just as the IRS in the U.S. has been used to target certain corporations and individuals, so too can VAT be used in the same way. As for Government having data to assess the "sweet spot" they do already: They just cannot go to 22+% overnight. WTO compliance gives until 2025 to reduce/eliminate duties so the government gets to ride a revenue hump, or so they hope. Seems Mr. Roberts finally got it, as based upon his last position (VAT vs.Price Control, Trib) it seemed he didn't at that time.
sheeprunner12 8 years, 7 months ago
An increased VAT (15-20%) is inevitable as we continue to go hat-in-hand to the IMF for fiscal advice ..... customs duties must be almost eliminated to join WTO and that is probably 3-5 years away .......... whether we like the idea or not
The writing is on the wall .............. best VAT ??????????? Not for long!!!!!!!!
birdiestrachan 8 years, 7 months ago
I know for sure the FNM's do not want to hear what Mr: Roberts had to say, Note Mr: Roberts was against VAT. Most people I Have met said they Pay taxes in Miami Florida, Why should they not pay in their own Country. Quote :Mr: Kennedy "Ask not what your country can do for you. Ask what you can do for your Country. Minnis , Butler and the rest of the FNM's must be foaming at their mouths right now., ,Making Web shops legal was also the right thing to do .But the concern of the FNM it is to much for persons over the hill all that wealth. never mind giving four wealthy families a 20 year monopoly for container shipping.
asiseeit 8 years, 7 months ago
Birdie, you are talking garbage again. The Government owns 40%, the SHIPPING COMPANY'S own 40%, and the public owns 20% of the container port. Who are these 4 family's you think own the whole thing? Could our P.M.s dear friend Mr. Mosko be one of them? Pray tell, as you know SO much, LOL.
DonAnthony 8 years, 7 months ago
Birdie never let the truth get in the way of a good talking point ( lie ). While 40% of the port is in the hands of 20 families, there are more individual BAHAMIAN shareholders in the port than in any other company in the history of the Bahamas, all made possible by Hubert Ingraham who gave salary advances to civil servants to buy shares. Bahamians could have owned some of BTC as planned by Ingraham but the PLP cancelled the share offering when they came into office. They have no interest in seeing the average bahamian become a shareholder in the wealth of this country, only for the select few. All for me baby.
The_Oracle 8 years, 7 months ago
As always the implementation is the failure, not the push (by external forces) to modernize and make accountability the acceptable national standard. Private sector first however, as that is where the revenue to be skimmed is generated. accounting for how it is spent will prove to be elusive. Gotta fund carnivals and drinking sessions on the park grounds or the natives will get restless. Unfortunately the private sector is too busy staying under the radar trying not to get noticed to present a unified front against a) government b) unions c) bureaucratic idiocy d) crime. It will come, but only when the business climate gets untenable, and many will have left. By then it will be a last, desperate, and possibly too late effort. It bites but we allowed it, played with it, picked sides in it, cut deals with it, so we own it.
DEDDIE 8 years, 7 months ago
If you want anything to be done effectively gave it to the private sector. If I had it my way I will turn over the entire government to the private sector.
asiseeit 8 years, 7 months ago
The Bahamian people have no idea where the VAT money is going. We where lied to once again by government and told they needed to implement VAT to pay down our debt yet we have no proof this is happening.
Emac 8 years, 7 months ago
If the Bahamas has the best VAT in the world, then the Grand Canyon is a ditch!
birdiestrachan 8 years, 7 months ago
Don Anthony 40% owned by 20 families who always owned the shipping companies. the rich got richer and the poor got poorer. and why the 20 years protection? BTC was sold to the English and Cable to the Canadians. Do you remember your Papa's or is he your Delivery boy,? statement No Bahamians need apply. As Far as Shares go. Do you know who gets their share first. ??
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