0

Davis Won't Commit To Cutting Vat

Leader of the Opposition Philip ‘Brave’ Davis. Photo: Terrel W. Carey/Tribune Staff

Leader of the Opposition Philip ‘Brave’ Davis. Photo: Terrel W. Carey/Tribune Staff

Reader poll

What grade would you give the government's 2018/2019 Budget?

  • A 8%
  • B 14%
  • C 9%
  • D 11%
  • E 6%
  • F 30%
  • U 21%

705 total votes.

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

PROGRESSIVE Liberal Party Leader Philip "Brave" Davis was noncommittal yesterday on whether a PLP administration will return the value added tax rate to 7.5 percent should the party be elected to office in the next general election.

Instead, Mr Davis said he was not going to make any promises because he could not say what condition the current Free National Movement government would leave the country in following an election.

However, the PLP leader was "unequivocal" in stating the party sees the proposed VAT increase to 12 percent as a "mistake", adding there was potential for a "double dip recession".

He further criticised the Minnis administration for the disconnect between executives in government and members of parliament. The Tribune reported yesterday that several backbench MPs were surprised by the announcement of a VAT increase. Mr Davis also took at swipe at Prime Minister Dr Hubert Minnis for his numerous changes in position on matters of national interest saying the national footwear is now a "flip flop" and rejected the assertion the proposed VAT hike was in an effort to dodge the devaluation of the Bahamian dollar.

For his part, PLP Deputy Leader Chester Cooper said the government had done a "piss poor" job in consulting stakeholders and the business community on the tax hike.

Mr Davis also addressed the former government's rationale over introducing VAT at a rate of 7.5 percent.

He said: "I wish to say having governed this country we were satisfied, that is the Progressive Liberal Party, that the VAT revenue (from the) 7.5 percent coupled with our revenue enhancement measures and a pro-growth economic strategy, we thought that was sufficient to defray the government's day to day operational costs and to deliver on their promises to the Bahamian people.

"We felt with the opening of Baha Mar, The Pointe, the sale of the Lucayan hotel complex in Freeport, the cruise port in east Grand Bahama, the Ocean Cay development in Exuma Cays and other projects on the drawing board, that there would have been no need for a hike in VAT.

"Let me be unequivocal in our opposition to this tax hike. It is a mistake and can induce double dip recession."

Mr Davis noted the establishment of a revenue enhancement unit under the former Christie administration. He maintained the unit collected $25m to $30m each month up to May 2017. Mr Davis claimed the unit was dismantled when the Minnis administration took office, adding if it remained, the country would not be faced with these fiscal problems.

"This unit within the Ministry of Finance was collecting $25m to $30m per month up to May 2017 and their work was being commended by international credit rating agencies."

He did not say which agencies he was referring to.

"It is not true to say that the unit was floundering. It floundered after May 2017 because the minister of finance dismantled the unit and revenue collections suffered. The revenue enhancement unit should be immediately reestablished to its full manpower to carry out this important mandate of collecting revenue," he continued.

Mr Davis, former deputy prime minister, said there is as much as $630m in uncollected revenue. He said the government should focus on this stream of revenue instead of increasing VAT.

Comments

JohnDoes 9 months, 2 weeks ago

Of course he wont commit. Only a buffoon would. It will undoubtedly be a blame game,a simple 'they did it not us' type of thing whilst elbow deep in the cookie jar babbling their juicy mouths with crumbs trickling onto their $2k suits and dresses, about how they cannot reverse it because the 'former govt' left them in a position where they may have to 'increase' it. This political game is real magic show, and a good magician never reveals his/her secrets despite the fact that the tricks were revealed decades prior.

0

Well_mudda_take_sic 9 months, 2 weeks ago

Politicians never ever cut taxes...they only increase them.....and that includes Minnis and Turnquest!

0

licks2 9 months, 2 weeks ago

And they will increase them again. . .WHEN THEY WIN THE GOVERNMENT AGAIN. . .or the DNA will do so comes next election. . .the aim for WTO accession is 15%. . . the PLP ducked the bullet and gee we 7.5% scared to out in that 15% for fear of election and now the FNM doing the same thing because they lil scared of election too! So you and ya crew will have to finish up the tax requirement in order to move duties. . .

0

DWW 9 months, 2 weeks ago

death and taxes. robin hood gets shot. all the things you can bet on in life. funny thing is the "GDP growth" is only a result of VAT. no one is making any more money but somehow the economy is larger.

0

Well_mudda_take_sic 9 months, 2 weeks ago

Never believe or trust the IMF and other international agencies like the IDB whenever they 'talk up' your GDP. They do this to encourage corrupt politicians in less developed countries like ours to borrow more for essentially worthless high cost projects and studies that only benefit their own foreign consultants and foreign constituents, or to raise taxes in an effort to further cripple the economy so that the foreign vultures (the foreign corporate interests these organizations represent) can swoop in and acquire our natural resources and establish monopolies of one kind or another for a mere pittance of their real value to the Bahamian people.

0

licks2 9 months, 2 weeks ago

You is so dang silly and naive politically now. . .just think that you and the DNA could be the next government.

0

Sign in to comment