By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas is now perilously close to dropping into the bottom third of the World Bank’s ‘ease of doing business’ rankings, after the country was ranked 121st out of 190 nations when it comes to facilitating private sector activity.
Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, expressed surprise that this nation had tumbled 73 places in the global rankings when it came to the ease of ‘paying taxes’.
Pointing to the initiatives undertaken to improve tax collection efficiency and administration, Mr Sumner said the Chamber - via a public private partnership (PPP) style approach - would work with the Government and its agencies to obtain a better understanding of the World Bank’s findings.
“We’ve made improvements in the tax system,” he told Tribune Business. “I’m surprised in those numbers, as I believe we’ve improved our tax collection system.”
The plunge in the Bahamas’ ‘paying taxes ease’ ranking, from 22nd in the world to 95th, was the main reason why this nation failed to improve its overall position in the World Bank rankings, falling one spot from 120th to 121st year-over-year.
And the reason for the Bahamas’ slump was made abundantly clear, the World Bank stating bluntly: “The Bahamas made paying taxes more complicated by introducing a Value-Added Tax.”
It estimated that Bahamian VAT registrants, on average, spent about 157 hours per year - equivalent to almost 20 working days - calculating, collecting, filing and remitting the tax’s payments to the Government.
This negated improvements made in other areas, especially in the ‘ease of registering property, where the Bahamas moved up 18 spots from 184th position (near rock bottom) to 166th.
The World Bank attributed the improvement to the Bahamas “reducing the cost of transferring a property”. However, on other criteria, such as dealing with construction permits; getting electricity; getting credit; and protecting minority investors, the Bahamas fell in the rankings by between one to six spots.
The World Bank’s report again indicates that the Bahamas continues to ‘stand still’, while rivals make improvements and leapfrog ahead of it on regulatory efficiencies and systems - key determinants in attracting capital investment.
Mr Sumner acknowledged that this was “the story last time”, adding: “We’re not necessarily regressing or declining, but we’re not doing what we could to improve. Other countries are probably improving, and we’re probably not doing enough.”
Mr Sumner declined to comment further, but said the World Bank report was being assessed by the Chamber’s Board, and while the Bahamas’ ranking was “obviously concerning”, it wanted to obtain a better understanding of how this had been determined.
Suggesting that the issue would be discussed with the likes of Central Bank governor, John Rolle, and the National Development Plan Secretariat, Mr Sumner said: “It’s not a reflection on the Government or the private sector; it’s a reflection on the Bahamas.
“We’ve got to work collaboratively to understand what is happening.”
While the rate of slippage has slowed, the World Bank has again dropped the Bahamas’ ranking, sending a potentially negative message to international investors assessing whether to deploy their capital in this nation.
And, yet again, the findings suggest that repeated promises by Prime Minister Perry Christie, and several of his Cabinet Ministers, to improve the ‘ease of doing business’ in the Bahamas continue to sound somewhat hollow.
The Bahamas was initially ranked at 106th in last year’s ‘Doing Business’ rankings, but the World Bank yesterday said “data revisions and changes in methodology” had subsequently dropped this nation even further - to 120th spot.
While this minimised the decline this time around, it suggests that the Bahamas fell even further than originally thought in 2015.
Comments
Biminibrad 7 years, 6 months ago
This is not surprising at all and I would expect things to get worse before they get better.
BMW 7 years, 6 months ago
The plp want to return to their roots, the bahamas will become the sudan of the west. So sad. Birdie shut the f*&^k up!!!!!
C2B 7 years, 6 months ago
It's news to Edison that filing papers and paying taxes is a burden on business. He thought adding a new process and tax would help business. He also thinks he represents businessin the Bahamas. This guy lacks knowledge, and is delusional in the extreme. Without knowing his age, I would guess he is an out of touch 70 year old. Ever run a profitable business Edison?
ohdrap4 7 years, 6 months ago
October is the month of surprises, tricks or treats.
The govt was also surprised : http://www.tribune242.com/news/2016/o...
Renew Bahamas left after enjoying the ease of doing business.
Road and Traffic was stunned this week: http://www.tribune242.com/news/2016/o...
The picture shows the motorists enjoyig the ease of doing business.
No more teachables moments !!! No more "Going Forward" !!! From now on, Every one is 'surprised'
Lroberts 7 years, 6 months ago
Anyone who has ever opened a bank account, paid VAT, sold or bought property, sold shares in a company, applied to the Central Bank for approval to purchase foreign currency, applied for a building permit, applied for electrical, water or telephone service understands full well why the Bahamas rankings are where they are. The Government Cabinet Ministers and Mr. Sumner may have an understanding that The Bahamas needs to improve its ease of doing business rankings drastically, but it will never happen until they get their fingers out and deal with the poorly paid, but over paid for what they do, entitled civil service who have been poorly trained and who do not have a clue about what is needed to be done and above all could care less.
SP 7 years, 6 months ago
.......................... Everything PM Christie Touch's Turns To Dung & Fails .............................
Getting rid of Christie and his crew of dumb, corrupt, pirates must be the countries top priority!
Sickened 7 years, 6 months ago
I joke - Mr. Christie announced to his team that 'We are almost there. We are almost the best... at being the worst. Keep up the good work team!'
Socrates 7 years, 6 months ago
there is no vision in the Bahamas, just butt sucking, handout seeking paranha. nothing progressive about the country at all. always trailng the pack. every change of significance always follows some country, organization or agency putting a gun to our head. WTF?
John 7 years, 6 months ago
Many small and medium business owners have been contemplating closing their businesses over the past few years. Not only have their businesses become overtaxed and unprofitable, but the mere tasks of keeping up with governments requirements have become burdensome. And when you add the crime element into the mix, there is no benefit to stay in business.
The_Oracle 7 years, 6 months ago
121 out of 190 is being very very generous: Probably more like 150 out of 190. There is no Government process in the Bahamas that goes smoothly, quickly, or is clearly outlined and adhered to. I'd love to see the World Bank spend some time on the ground talking to everyone OTHER THAN Gov't, civil servants or their lackeys in business who they are probably taken to. Get the Private sector to admit to the "grease" they must pay to get goods cleared, permits, vehicles inspected, The Civil servants from whom you need services, who arrive representing their "church"......cause, you know, we look after you...... get Contractors to detail building inspector payoffs, get foreign investors to admit to "Lubing" politicians. As to the Chambers of Commerce, quickly becoming apologists for slackness, colluding with Government, seeking elected office, largely toothless.
sheeprunner12 7 years, 6 months ago
This is the PLP legacy .......... and it is so sad that we will be going down with the SS PLP
Honestman 7 years, 6 months ago
Anyone who votes PLP in the next election needs to talk to Shane Gibson and Freddie Boy about where to get a good psychological examination. Can you imagine how different The Bahamas would have been today if in 2012 Hubert Ingraham had been given another term? He wasn't perfect by any means but Baha Mar would have been thriving, our fiscal position would have been much healthier and we would not be careering towards failed state status. I blame those of you who knew better and still voted for the PLP.
SP 7 years, 6 months ago
Perry Christie Vs. Hubert Ingraham? Which One Is The Biggest Jackass?
Six of one and half dozen of the other!
Corruption, asinine political stupidity and failure thrived unabated under both PIRATES.
Bahamas destroyed by these two idiots.
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