The Tribune

By Morgan Adderley

Tribune Staff Reporter

madderley@tribunemedia.net

"A TOTAL disaster for the poor people," is how Vachel Sweeting described the government's plan to increase value added tax from 7.5 percent to 12 percent.

The Tribune recently canvassed Nassau to gauge the public's reaction to the Minnis administration's decision to raise the tax.

The majority of people who spoke to this newspaper replied with anger, shock, and a feeling of being blindsided by the government.

"With regards to the VAT increase, it is a total disaster for the poor people. This is not something that the poor people can actually take on at this stage," Ms Sweeting, a Killarney constituent, said.

She added there is "no guarantee" the government will use the collected money for its intended purpose.

"Our debt never went down by the implementation of this VAT, so we are not certain that this is going to happen," Ms Sweeting said.

"And, of course, only the consumers are going to carry this cost. And this is going to in turn affect businesses, because persons will (clamp down on spending).

"They would not look to spend any more money out there. They're going to start staying home and cooking and probably farming…just to be able to survive."

Ms Sweeting also referred to her nieces, nephews, and friends with children, saying their experiences have given her an appreciation of how the VAT hike will affect parents - such as school fees increasing.

When asked how the increase will affect her extended family and livelihood, Ms Sweeting said changes will have to be made.

"As we plan to go to the food store, we would really have to evaluate what it is that we need to have," she said.

"We're going to really have to get back to farming ... or we may have to take a job in the United States as expats."

When asked what avenue the government should have taken instead to increase revenue, Ms Sweeting pointed to its spending, suggesting the government cut back.

She also referred to the November 2017 proposal of the Minnis administration to increase the salaries of members of Parliament. This has not been implemented.

"Stop putting money into broken cisterns because it's only going to pour out," she said.

"They have to evaluate the things that are actually going on and see if it's something that needs to be done with regards to the Bahamas."

Philip Armbrister, a South Beach constituent and father of six, said he anticipated a tax increase-- however, he didn't expect it to be implemented so swiftly.

"It's something that would have been expected down the road as things change," he said.

"But it just came, took everybody by surprise, government being in just one year.

"And the statement was made prior to election that it would be no increase in taxes. And (that) is an automatic increase in tax. So, I think it's caught the people off guard," Mr Armbrister said.

In 2016, when Prime Minister Dr Hubert Minnis was leader of the Official Opposition, he criticised the idea of increasing taxes in an interview with The Nassau Guardian.

"I don't believe in increasing taxes, I believe in decreasing taxes and increasing opportunities," Dr Minnis said at the time. "Increasing taxes is a lazy way out. When you don't want to think, you just tax."

Naquel Brown, 43, runs a convenience store with her family. As a small business owner and mother of four, Ms Brown discussed the impact of the increase on her livelihood.

"Boy, it's going to be rough," the South Beach constituent told The Tribune.

"We have a convenience store and we're already paying a lot (of) VAT. And we already ain' making much because we have to buy most of our groceries from here, so and then to add VAT on to it…it's already rough."

Ms Brown said she thinks the increase in VAT is going to make a bad situation "worse".

"It's so sad because nowadays, we have a convenience store, and people can't really shop like that in the convenience store. They still have to go to the big stores.

"So it ain like we making that much money in a convenience store. But you just got to pray man, 'cause this going to be something else."

Charles Sealey, 23, tried to see a positive outcome of the VAT hike.

The father-of-one lives in a six-member household and suggested the tax increase could have a beneficial effect on the family structure.

"Well, to be honest I think it's going to help us positively," he said.

"We've already started talking about having more family dinners at home, cooking more instead of spending money outside of that area. So I think for the better.

"It will make things a little tougher on us (but) for the family system I think (it's) a good thing."

In terms of alternative tax measures, Mr Sealey admitted that he does not have enough knowledge of the tax system to make "an educated decision".

"But I am hopeful that they made the right decision on what they think is the best thing for the country. So I'm just going to do the right thing and follow it," he said.

Diana Noe, 20, is a mother-of-one who also lives in a six-person household. She thinks the impact of the VAT hike will be "pretty bad" on her family, as she is unemployed.

The Centreville constituent added that the cost of groceries and diapers concern her the most. She said she wished the government had tried another way to generate revenue.

Bryan Hendricks, 51, predicts that the increase in VAT is going to "cause a problem".

The Seabreeze constituent has no children, but lives with his wife and extended family. He added the tax hike is going to impact people "in every way".

"(VAT) is going to be a serious thing on the nation," he said. "The nation going (to) feel it."

The VAT increase takes effect on July 1.

Photos: Shawn Hanna/Tribune Staff