By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Chamber of Commerce’s chairman said that while Value-Added Tax’s (VAT) introduction had been smoother than anticipated, “we kid ourselves if we think it was a perfect roll-out”.
Gowon Bowe said a post-mortem on VAT’s implementation was needed, adding: “With VAT I think we need a post-mortem in terms of what are the success stories, what are the challenges, what we need to improve. We kid ourselves if we think it was a perfect roll-out.
“It was certainly smoother than anticipated. I think, by and large, the society has adapted to it. It really is a matter of seeing where we can improve on the success we have had. We need to have an understanding of the resources that were collected and how that will filter out into businesses.”
Mr Bowe continued: “Business License fees in the original [VAT] ‘white paper’ were intended to be nominal because VAT would be replacing that, but there has been no talk about that since.
“We know that VAT came in at a low rate, and that there are still plans for WTO accession, so from that perspective we need to understand - or at least comprehend - what is going to take place with VAT and the taxation system.
“There was also the issue of fiscal responsibility. We haven’t heard a lot on the fiscal legislation, the white paper or the Government’s position on what we are going to do. When we start thinking about tax reform we really always said it was fiscal reform. As a country we can’t rest on our laurels with regards to VAT collection; we have to focus on how we balance expenditure so we get surpluses and can reduce our debt.”
Mr Bowe acknowledged that Baha Mar would continue to be major issue until a resolution is reached. “Baha Mar is an area of focus because international observers have placed such high significance on that, and what it meant to the economy,” he added.
“Baha Mar should have never been billed as the saving grace for the Bahamas. It should have been the economic boost, the stimulus to propel us where we wanted to go in terms of GDP growth. Due to that sort of message, now with the delays and challenges, there is that sentiment of despair and uneasiness.”
Mr Bowe said: “We need to watch how that plays out but, in reality, that is a private sector transaction. The bank lent money, there was a developer that is now sidelined by virtue of the receivership and liquidation. While the Government has the onerous task of answering to the public, they don’t have the influence to say this is what has to happen.”
He described National Health Insurance (NHI) as the ‘enigma’ for 2016. “There is still a lot of information that has to come out. We have to know what is going to be the vital benefits package; what truly is the validated cost; what is going to be the funding strategy; and what the roll-out plan is,” Mr Bowe added.
Comments
Well_mudda_take_sic 8 years, 2 months ago
This fella Bowe must be tone deft and daft......honest hardworking Bahamians have not adapted to VAT at all.....VAT remains a cruel regressive tax forced on most poor Bahamians by the corrupt Christie-led PLP government for the purpose of unjustly enriching the political elite and their business cronies while leaving our country mired in an increasing amount of national debt.
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