Prime Minister Perry Christie at a recent press conference to discuss the aftermath of Hurricane Matthew. Photo: Shawn Hanna/Tribune Staff
By KHRISNA VIRGIL
Deputy Chief Reporter
kvirgil@tribunemedia.net
AMID fiery criticism levelled at the government over Prime Minister Perry Christie’s suggestion that there could be a special tax to assist the country in the aftermath of Hurricane Matthew, Cabinet yesterday discussed the feasibility of a sin tax on tobacco and alcohol to accumulate the necessary funding for repair and recovery efforts, The Tribune was told.
However, according to high-level government sources, this idea was rejected by the majority of Cabinet ministers who believe that to raise money, the Christie administration should consider avenues that free Bahamians from additional taxation.
Among these is the suggestion of a cruise ship passenger tax, which would ensure local taxpayers are not subject to further tariffs, the source explained to this newspaper. Cabinet has not made a final determination on the issue, The Tribune was told.
But while the possibility of a new hurricane tax was met with backlash yesterday by Bahamians who voiced their concerns on social media, the idea was welcomed by staunch Progressive Liberal Party (PLP) members who praised the prime minister for advancing a suggestion that could be the country’s solution to recovering from the devastation caused by Matthew.
Among these was PLP Chairman Bradley Roberts.
He was adamant that a “temporary tax” was the key to the dilemma the government now faces.
“Should we pull the needed money from the skies? Do the critics have an alternative programme to raise the money we need? I can tell you that many of them don’t,” Mr Roberts said when contacted yesterday.
“I understand that there were a lot of critics voicing their concerns today (Tuesday). We then have to ask if they are concerned about the restoration of our country. I am open minded to any suggestion of an alternative programme.
“We’ve got significant damage and the money has to come from somewhere. With all we are facing now, are we then to forget our brothers and sisters whose lives have been turned upside down?”
He added: “I want to hear some alternative programmes from these critics. It is traditional in societies like ours. It would only be a temporary measure to address the situation.”
Former PLP Cabinet minister George Smith also welcomed Mr Christie’s special tax suggestion, but said he would go further to suggest that the government insure all of its buildings and spaces so that in the event of a natural disaster, there would be no disruption of the budget cycle.
Mr Smith said: “I am delighted that the prime minister has put forward a suggestion. I think that this is the time for us to come up with innovative ideas.
“I support something that was advanced recently by a columnist who suggested that Parliament should move for the appointment of a committee to have broad authority to travel from place to place to go wherever hurricanes have hit not just recently, but in the past so they could get a good clear appreciation of the damage and the long term effect of these damages.”
He continued: “What about examining and ensuring all public buildings, public parks, public roads, public spaces and for the government to underwrite the hurricane damage particularly in places where people lack the ability in many of the islands where they live on generation and other properties?
“Where the government insures those houses and in the low lying areas, insure against flood and we pay a tax or add a percentage or use a percentage of the real property tax or a small national insurance tax towards paying for this insurance annually?
“By doing this we can get quite a bit and ensure that the Commonwealth of the Bahamas’ public lands, public buildings, public parks and open spaces are covered,” Mr Smith said. “The government can underwrite the homes for instance of less than a particular value of for example $30,000, $40,000 or $50,000 so that if a hurricane hits, the insurance comes.”
On Monday, as he toured areas of New Providence that were hard hit by Matthew, Mr Christie said if a tax on “some item” were imposed, it would be done in a way that has a “minimal impact on people.”
At the time he said: “We have to give serious consideration to a more effective way of financing the loss that the country has experienced because we’re also paying now for Hurricane Joaquin and it may well be that we have to give consideration to a selective approach to raising money by taxing some item that would be of minimal impact on people. But it’s a matter we have to look at because it’s an enormous challenge to the country. We’ve been faced with downgrading. This is not an easy situation. We thought the way was clear with Baha Mar. But now we have Hurricane Matthew.”
Mr Christie previously talked about the government’s intention to create a $150 million Hurricane Reconstruction Bond that would assist people, as well as small and medium sized businesses impacted by the hurricane and to help accelerate reconstruction efforts.
Mr Christie also announced on Monday that Urban Renewal 2.0 will be expanded to strengthen recovery efforts.
Currently existing in only 11 constituencies, the programme will expand to the other areas in New Providence to help authorities gain command of the issues affecting residents and to provide fast response to their needs.
Comments
John 7 years, 6 months ago
This suggestion was far off base and anti-recovery. Bahamians need help not more taxes. Do they (your government) realize that some businesses have not opened yet since the storm? Barber shops and beauty salon s that have no power are into their third week of lost business. Even the Junkanoo Committee should relax the rules on Junkanoo Parades this year. Rather than force participants to go seek scarce funds, that can be used for Hurricane Relief, they should go to a "come as you are", theme. Allow groups to do repairs to damage costumes by any means necessary and base judging more on creativity, performance and music.
viewersmatters 7 years, 6 months ago
Here is the best suggestion all and every sitting Government in and out of Parliament who have over 500000 thousand dollars in their bank account rather it's in the Bahamas or outside the Bahamas should be made to put 15% into a hurricane trust fund. All government members inside and outside Parliament annual income including their personal businesses should be automatically tax 7.5% of every dollar. And final solution stop damn wasting public funds not because you greedy hugs didn't work and earn public money mean that you all wasteful dishonest and care less people have the right to do as you wish with public funds!!!!
observer2 7 years, 6 months ago
Hi Viewersmatters, your recommendations I believe are not too far off of the mark of where the PLP and the Cabinet are going. The hurricane disaster provides a good excuse/rationale for the implementation of income tax.
If VAT revenues generated twice what was anticipated at $600 million, income tax and asset based duties on bank accounts could generate twice that at over $1 billion. This is especially true of offshore bank accounts of foreign residents are also taxed globally.
Also, with the implementation of income tax the PLP can eliminate customs duties which would put them in the good books of international free trade organization who seem to be all powerful.
Also, it wouldn't hurt to suddenly devalue the Bahamian dollar at the same time to make the Bahamian tourist product more competitive. It doesn't matter to the PLP because the poor people don't have any money in the banks to begin. Have you seen the long lines for food stamps recently?
I sense a populist change in the PLP philosophy where they will support the poorer/votes at the expense of the elite, who never supported them anyhow.
Government is being run as a big $2 billion business from the top straight down to the electrical linesmen who will only turn on your lights if he is paid a fee of $500. If you want your lights on, please don't call BEC, they will not answer your phone. Stop an electrical worker in the street. It doesn't matter what the politicians and electrical management say...watch the price of the fish in the market.
OMG 7 years, 6 months ago
First of all if this government can't manage road traffic, MOH, Bahamasair How the hell do you expect them to manage income tax. You will never get the fishermen, construction workers, and others to declare let alone pay. Devaluation ? Almost everything is imported so the cost of almost everything would go up , this idea only works if there is a lot of home grown items. I have a suggestion tax all these winter residents homes. Some of them are charging $7 - 10,000 a week and paying little or nothing.
observer2 7 years, 6 months ago
OMG, there is no need for the fisherman, construction work and other marginal people to declare and pay income tax, these guys don't do VAT returns either. The PLP is not after the small men, they are after the elite Bahamian business class and the foreign residents to pay the income tax.
I agree with you on devaluation, everything that is imported will go up but the number one cost of our tourism product is labor and this will go down in comparison to the hotels taking in US dollars. So the poor man will get squeezed just like he did with VAT. But the PLP will simply say the elite business man increased prices and is making a killing off of them after the devaluation. Ya just can't win wit dese negros.
Also, I don't expect them to manage income tax any better than the terrible management of the $600 million in VAT taxes already collected or the $100 million of gambling taxes already received. The almost $1 billion in extra taxes received so far has not made a dent in the government debt and I don't expect the income taxes received to make a dent either. The tax money collected is poring out through a big hole at the bottom of the bucket.
Most of our leaders are in their seventies so the sustainability of the Bahamian economy is not really their first priority. Christie says over and over that the rest of the world thinks we are rich, secretly he knows there is a lot of rich people around. The secret of the PLP is to part the rich from their money and blame them when the poor man gets screwed with higher prices.
Abaconian 7 years, 6 months ago
Where is all the VAT money?? Just a few months ago they were blowing their trumpets about how successful VAT has been..
The gov. is broke and now they are looking for any penny they can find. Maybe if they didn't squander it all on unnecessary things we might have some.
How about they get some money from the "web shops"? The gave gaming licenses to 8 of them from what I understand. It says that they charge them an Annual license fee of $250,000 dollars, $2,000 per premises, and $1,000 per agent...If you do the math, the gov. is getting a little over 2m dollars in revenue a year from these webshops. For an industry that is making millions of dollars a week, don't you think we could raise the fees and make them pay their fair share?
DDK 7 years, 6 months ago
We hear you Abaconian! Do you recall any hue and cry about taxes when Hurricane Floyd devastated your island in 1999?
Imagine wasting more taxpayer funds money with "the appointment of a committee to have broad authority to travel from place to place to go wherever hurricanes have hit not just recently, but in the past so they could get a good clear appreciation of the damage and the long term effect of these damages". This PM and cabinet are so inventive at creating new ways and means to squander money under the guise of helping those in need.
TalRussell 7 years, 6 months ago
Comrades! The PM says hurricane Matthew does calls for drastic measures by his PLP Cabinet colleagues. But why drastic measures only against the average citizens?
What if the PLP Cabinet stops playing all stupid to further tax the ordinary man's and woman's. I say cancel all proposed licensing for the Numbers Man's (which to date Cabinet have not legally authorized Obadiah to issue) and send the Numbers man's a packing with all the millions they done accumulated off the backs of the working and no paychecks poor people...Once the proposed Numbers Licenses have been withdrawn, canceled and returned back to Obadiah, the Minister and his Cabinet colleagues can then establish a National Lottery.....A government runs National Lottery that will have no involvement of not a single Numbers Man's.
I wish to thank Minister Obadiah for listening to Comrade Tal's sound advice, to please not tax the most hurtin citizens anymore than they are currently being taxed.
Comrades of the Red Movement Party...Exactly what is your formal position on the cancellation of the Numbers Man's "only yet proposed" Licenses...in favor of a National Lottery?....Cause to date I can think of not one single clear and concise position the Red Movement Party have taken in regard to how the PLP Cabinet have issued "temporary only" Licenses to the Numbers Man's? Why so silent....Taking 2017 campaign donations...maybe?
DDK 7 years, 6 months ago
A National Lottery is, of course, an excellent idea. However, without proper accountability and transparency, it will be doomed to fail. Who will be put in charge, the Minister of Finance?
TalRussell 7 years, 6 months ago
Comrade DDK, the PM can appoint Henry and Janet Bostwick as Chair and Co-Chair to run the National Lottery - hands off from political interference. Two outstanding Bahamalanders that the vast majority of people would be proud to hold up a mirror of incorruptibly to, who have gone under appreciated and under used by both PM's Christie and Papa Hubert.
sheeprunner12 7 years, 6 months ago
The national Lottery did not appeal to the PLP because it would not guarantee cronies to fund their campaign ......... that ship has sailed
Sickened 7 years, 6 months ago
If the PLP would return the money that I believe they have stolen over the years we will have more than enough to recover from Matthew. It is their fault that the government has no money saved for disasters.
Zakary 7 years, 6 months ago
Please, please, please everyone, register to vote in the next election because surely more taxes isn’t in your best interest.
Don’t let these bumbling leaders with one dimensional thinking suggest that a new tax, once implemented will solve our countries’ hurricane recovery problems, as it will most certainly do the opposite.
What you see here is the incompetence of multiple successive government combined, and this current government is the most incompetent of them all.
“Should we pull the needed money from the skies? Do the critics have an alternative programme to raise the money we need? I can tell you that many of them don’t,” Mr Roberts said when contacted yesterday.
Wasn’t it his government that already introduced an alternative program, something called VAT? The people’s pockets are empty. Perhaps it is the PLP government who are attempting to pull the needed money from the skies by implementing another tax. Hide back in your rabbit hole, sir.
CriticalAnalysis 7 years, 6 months ago
Oh, I am just disgusted with this Government and our severely inept Prime Minister. What the hell is being done with the monies that are being collected from VAT? What was the purpose of this stupid, unnecessary, frivolous Carnival? Listen, the Public Treasury receives all kind of revenue, unfortunately its not enough to take care of the country and line the pockets of our crooked country leaders and their contractual cronies. Abaco alone produces large sums of revenue just through Stamp Tax and VAT on Conveyances & Property Taxes. What happens to this money? Millions!!! We eat it and sh*t it out aye? The mere fact that he let this Hurricane tax consideration slip out to enrage the public is an example of how idiotic he is. Because Bahamians are welcoming to more taxes right? We making 50 cents but we don't mind giving 40 out of that to a Government that hardly looks back upon its people? Mussy had that morning shot too early.... someone should just banish him to a deserted island.
Well_mudda_take_sic 7 years, 6 months ago
Crooked Christie is about to start blaming any and everything on the aftermath of Hurricane Matthew as his corrupt government seeks to add $150 million more to our existing unsustainable national debt or introduce a special tax. Any significant increase in our national debt at this time would almost certainly trigger a downgrading of all of our country's debt to "junk bond" status with severe consequences to follow for all Bahamians. Introducing a new special tax would assuredly cause another round of horrific consumer price increases for all Bahamians, and would undoubtedly result in even more marginally viable small and medium size businesses having to close their doors for good. This in turn would greatly increase unemployment to a dangerously high level with obvious implications for more crime in our society. Crooked Christie's failed social and economic policies have already created a grossly mismanaged, very dysfunctional and unsustainable welfare state in which many Bahamians and Haitian-Bahamians have been made dependent on the government for their jobs in exchange for voting the "right way" come general election time. But now even Crooked Christie must face the fact that blood cannot be had from a stone to support his bloated non-productive public sector and the graft and corruption that have unjustly enriched his very greedy chosen few. Honest hardworking Bahamians and the vast majority of Bahamian businesses not owned by Crooked Christie's cronies have had all they can take and stomach. We have reached the fork in the road that all honest hardworking Bahamians had hoped and prayed they (and their children) would never arrive at. If you look at Christie's waistline, it's easy to understand why he thinks he cannot tighten his government's fiscal belt, which is precisely what needs to be done. Crooked Christie should start by scuppering the very costly idea that politicians need to continue flying all over the Bahamas to survey the aftermath of Hurricane Matthew. All of this unnecessary travelling by politicians in the age of digital photos and in the run up to a general election takes on the appearance of campaigning by the political parties at the people's expense rather than at the expense of the parties. Crooked Christie should tell Fred Mitchell and all of his other government officials that travelling first class is not an option for him or them over the next few years....he should also have them cut out attending many of the silly conferences abroad that they attend, often tacking on vacation and shopping time. I can think of $150 million of unnecessary fat (lard of the worst kind) That Crooked Christie has padded into his annual budget for the benefit of his cronies. He needs to take a scalpal to it and cut deep.
DDK 7 years, 6 months ago
Very well stated! Here! Here!
Well_mudda_take_sic 7 years, 6 months ago
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Well_mudda_take_sic 7 years, 6 months ago
The Christie administration should follow through on its previously discussed plans to introduce a significant "sugar tax" on unhealthy drinks and beverages sold in the Bahamas. These sugar loaded drinks are causing an explosive increase in the rates of childhood and adult obesity resulting in soaring incidences of type II diabetes, high blood pressure, tooth decay, etc., all of which are taking an extremely costly toll on the healthcare costs of our small nation. Coca-Cola's token gesture in distributing water in the aftermath of Hurricane Matthew is of course appreciated, but our government should nevertheless proceed with its plans to introduce a special sin tax on all of the so called "sugar-loaded drinks", whether produced locally or imported. The special sin tax on such drinks should be set at a rate equal to or greater than the sin tax rate levied on cigarettes. It also should be in addition to any other duties, excise taxes, VAT, etc. that currently apply to these unhealthy addictive sugar-loaded products. Most of us know that consuming too much candy, too much ice-cream or too much of most other high sugar content products is bad for our health. But the producers of these other sugar-loaded products differ from the likes of Coca-Cola in that they do not aggressively and callously target their unheathy and highly addictive products at our children and young adults. Our Minister of Health (Gomez) should be pressing for this new special sin tax to be implemented at the earliest possible time!
ThisIsOurs 7 years, 6 months ago
Should we pull the needed money from the skies? Do the critics have an alternative programme to raise the money we need? I can tell you that many of them don’t,” Mr Roberts said when contacted yesterday.
Not from the skies, God need that, pull it from Junkanoo carnival, BAMSI, the baseball stadium and any other budgeted item that is not mandatory before 2018
ThisIsOurs 7 years, 6 months ago
I don't understand why none of them have talked about adjusting the budget. It's an action step you take before borrowing more money
sealice 7 years, 6 months ago
I want them to bring the tax..... this will surely be the last straw and finally we can march on Rawson and push them forcibly out every single stinkin last useless one a dem PLP and FNM been sitting in dat house getting rich and fat while the country turns to crap.
OMG 7 years, 6 months ago
What planet does Bradley Roberts live on. Just remember Mr Roberts your Government in addition to VAT has implemented a raft of increases from driving licenses ,customs charges, tyre /ac disposal taxes ,departure tax and on and on and on. They heralded VAT as instantly going to reduce the national debt. What do they do Mr Roberts? spend all the VAT, borrow more, have a loss making Carnival, not trim any of these jobs for the aged boys, not trimmed foreign travel. Added to that any devaluation will not make the tourism product cheaper because imports will cost more. This government and blind followers had plenty of time and years to adjust the budget and instigate an emergency fund, but no they blindly went on their way and now expect the long suffering public to pay for their mismanagement.
DDK 7 years, 6 months ago
Just to add to these points OMG - "Among these is the suggestion of a cruise ship passenger tax, which would ensure local taxpayers are not subject to further tariffs, the source explained to this newspaper. Cabinet has not made a final determination on the issue, The Tribune was told."
The goose that laid the golden egg is already dying. Second homeowners and visitors are already going elsewhere. I suspect Crooked Christie and Co. are living in another galaxy!
Reality_Check 7 years, 6 months ago
And with the opening up of Cuba, the cruise ship owners will take any excuse our government gives them to channel their business elsewhere. The cruise ship owners have been complaining for years that Christie and Obie Wilchcombe have done virtually nothing to make the Bahamas a more appealing place for their passengers. What little has been done was done by the cruise ship owners themselves for the most part.
OMG 7 years, 6 months ago
So right and why not tax all these winter residents homes sometimes being rented from $7 - 10,000 a week. Why not have a nominal hook tax for visiting yacht people. Exuma has up to 500 boats in Elizabeth harbour all winter often cleaning out the fish and lobster not to mention coming down from the USA laden with beer and tinned foods. ?
Economist 7 years, 6 months ago
The only reason they decided against a tax on alcohol was because it would not raise the big bucks they wanted.
sheeprunner12 7 years, 6 months ago
Perry, this should be your tax plan:
80% of our youth smoke dope .............. make them happy and legalize dope and tax that ....... even America, Canada and Europe are doing that ........ stoned youth will guarantee more PLP votes ............. ah, Lord
TalRussell 7 years, 6 months ago
Comrades! If we keep maintaining our dependency on cruise ship dollars, we all will be back picking fruit over in Florida.....or making beds as domestics in Cuba.
It's an economic myth about how cruise ship tourists are good for business. Study the lack of dollars spent and I wouldn't be at all surprised to discover that for each cruise ship tourist we get, it's costing the public treasury about $35-$150 per head? We need to seriously acknowledge that cruise ship tourism does not have any sustaining monetary value for The Bahamaland?
The cruse passengers walk off the ships for a short spend nothing or as little as possible stroll around only to return on-board in time for more free food and treats.
Good God, we even signed over the land titles to $300 millions dollars in land values for (13) Private Islands, so they can sail away from Nassau, Freeport and Abaco, to entertain their cruse passengers at their private island beaches.
Are we crazy or stupid..or both? Good luck getting a return back on your $300 million for this broke-asses cruise ship tourists we keep inviting to our shores.
PastorTroy 7 years, 6 months ago
Legalizing Cannabis can solve this dilemma, and whosoever object to this, whether the Christmas Counsel or those in other for profit industries, JUST TAX THEIR (You know what I really want to say) INDUSTRY! #ProblemSolved
TalRussell 7 years, 6 months ago
Comrades! The PLP party of Pindling and Milo, is as much colonialism as everything Sir Stafford and Papa Hubert, geared for a tax system for directly 'taxing' the poor. The native and foreign rich among us must be made to pay their equal share of the taxes the poor by law must pay even to buy a O'Henry chocolate bar, or a must have package baby diapers.
When life's tough on the poor, it's no wonder they like drinks alcohol and smokes cigarettes. Now, PM Christie, says he wants raise the costs to the poor to indulge in a alcohol beverage or smoke. I say before taxing more on alcohol and cigarettes, why not tax rolling up ya marijuana joints?
John 7 years, 6 months ago
Christie dem should not jump the gun and pile more tax burdens on the Bahamian people. Despite the loss and destruction and devastation this hurricane will bring full employment to the Bahamas for at least a year. With an anticipated $1 billion unplanned injection into the economy for hurricane repairs and recovery, this can result in additional wealth creation and at least a $300 million increase in government revenues. Rather than panic and turn into money grabbing idiots, government must now seek to increase its revenues through other means other that taxes on Bahamians. Get the word out that the Bahamas is still up and running and open for business. Get the tourists numbers up. Help the fishermen and farmers get back on their feet, get the "Bah Mar" property up and on the market. Do what is necessary in Andros and Grand Bahama and the money will flow back to the government. If you operate in a panicked and doubtful mode then this will hinder recovery and the possibility of the hurricane being God's blessing to this country in disguise, "O ye of little faith "
BahamaPundit 7 years, 6 months ago
I did not think this would be possible in The Bahamas I knew growing up, but I have lost 100% faith in this PM and the PLP. I believe he should have resigned after the second downgrade. The secretive nature of his Baha Mar dealings are unforgiveable in my books and traitorous to the Bahamian people. I believe his actions will likely bring the downfall of this once great nation.
BMW 7 years, 6 months ago
Bahamas pundit you are right, the secrecy behind the bahamar fiasco is outright treason and a threat to our national security they should be walking to the gallows!!!! But hey it is the plp so its ok. They are outright robbing the country and people, its sickening. When will we wake up and smell the stench?????
BMW 7 years, 6 months ago
Bahamas pundit you are right, the secrecy behind the bahamar fiasco is outright treason and a threat to our national security they should be walking to the gallows!!!! But hey it is the plp so its ok. They are outright robbing the country and people, its sickening. When will we wake up and smell the stench?????
SP 7 years, 6 months ago
Thank You PLP & FNM For Destroying Our Country & Plundering Us To Haitian Status
C2B 7 years, 6 months ago
A national lottery is the best way to raise the money. The rest of the world pays health care and other common expenses with theirs. All the excuses for not doing it are nonsense!!! The current owners are just regular people; no geniuses there. If they can do it, anyone can. Hire an outsider to set it up like they do in the US and then set up audited, public record keeping. This is doable now!!! When you hear no; consider the source.
Sickened 7 years, 6 months ago
Can't do that! The numbers criminals would never support it and thus, neither will their lackeys - the PLP.
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