The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A NOTED ‘fiscal hawk’ yesterday questioned the Government’s decision to provide tax breaks to some industries to while not giving similar treatment to others that could also benefit, describing it as “a bit perplexing”.

“There are certain industries where the business licence tax is taking all of their net profits, if they are even able to make a profit in this economic environment. It’s a bit perplexing when you see the government flexing its muscle on the industries that might not be doing so well and giving others exemptions,” said Rick Lowe, an executive with the Nassau Institute think-tank.

Of note Mr Lowe said was the government’s decision to expand concessions for light manufacturing as outlined by Prime Minister Perry Christie in his 2016/2017 budget communication last week.

“How long does and industry remain an infant industry? Light manufacturing seems to be highly favoured by governments across the world. There must be a point that they grow up or it proves that the taxes are too high because it’s having an impact that necessitates people going to government hand-in-hand begging to reduce taxes or give them a favour that they are not giving another industry,” said Mr Lowe.

Mr Christie, in his 2016-2017 Budget communication, also unveiled several real property tax waivers, plus an ‘amnesty’ programme for defaulters who paid 100 per cent of sums outstanding by the next fiscal year-end. Mr Lowe also questioned this move telling Tribune Business: “It’s kind of perplexing that you would give people real property tax exemptions if you don’t pay. Those of us who have paid and continue to pay don’t get any break. It seems like it’s in the taxpayers’ best interest to delay paying so you get a tax break. You’re allowing churches to import air conditioners duty free and they, for all intents and purposes, seem to be making good money, while the businesses selling the air-conditions can’t get an exemption.”

The Prime Minister also noted that the government would “reduce or eliminate the duty on a number of household grocery items including appliances and parts, prepared turkey, ham, beef, chicken meat, macaroni, spaghetti with meat and the like, ice-cream, biscuits, waffle cakes and pastries among others.”

To this Mr Lowe commented: “They’re reducing duty on all the fattening foods and at the same time supposedly introducing a national health insurance scheme to tell people how to eat properly. If you can’t afford healthy foods and you’re reducing the taxes on fattening foods it just proves that those of us that sit in these offices and make decisions on taxation don’t understand the perplexities of the economy. What I might think is a good deal to give our industry may impact another industry negatively and it’s very difficult particularly in a slow economy where the impact is worse.”