0

Budget: Vat To Rise From 7.5 Percent To 12 Percent

Government members head to the House of Assembly this morning for the delivery of the 2018-2019 Budget. Photo: Terrel W Carey/Tribune staff

Government members head to the House of Assembly this morning for the delivery of the 2018-2019 Budget. Photo: Terrel W Carey/Tribune staff

VALUE-added tax (VAT) will increase from 7.5 percent to 12 percent effective from July 1, Minister of Finance Peter Turnquest announced in the House of Assembly today.

However, the tax will be removed from all breadbasket items (with the exception of sugar), medicine, residential property insurance, electricity bills under $100 and water bills under $50, effective August 1.

The move will impact 30,000 Bahamas Power and Light (BPL) customers, and 43,000 Water and Sewerage Corporation customers, he said.

Breadbasket items were identified as butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, bread, tomato paste, baby cereal and formula, soups, broth, baby food, powdered detergents, condensed milk, soaps, fresh milk and mustard.

The government will also eliminate VAT on residential property insurance.

“This is a landmark Budget,” Mr Turnquest said.

“Indeed, it is arguably the most transformative Budget in the history of our nation.

He continued: “It is a Budget about finally putting an end to past practices of fiscal mismanagement and, instead, adopting an approach to the management of the fiscal affairs of the nation in the manner that they should be managed, that is, in a responsible, transparent and accountable way.”

Pick up a copy of Thursday’s Tribune for full coverage of the 2018/2019 Budget Communication.

Comments

proudloudandfnm 4 months, 3 weeks ago

Time for a general strike.

Time to fight.

Duty and now 12% VAT.

The FNM are traitors.

3

Sickened 4 months, 3 weeks ago

I feel used. These jokers can go sex themselves!

3

DDK 4 months, 3 weeks ago

There are some complete duty eliminations and other benefits offered. Mr. Turnquest should have delivered the bad news first and then given the good news! It probably would have made for a better acceptance of the VAT increase.

0

proudloudandfnm 4 months, 3 weeks ago

Groceries will go up now thanks to the new work load and added customs clearance.

And they are using that idiotic move as though eliminating from bread basket equalizes the new rate. Liars and hypocrites.

3

Sickened 4 months, 3 weeks ago

Minnis you can put your horns back on!

3

DDK 4 months, 3 weeks ago

Comrade, your corned beef is safe!

0

Sickened 4 months, 3 weeks ago

And Brave... don't start rubbing your grubby little hands together... you still ain't getting back in power. We may be dumb but we ain't PLP!

3

Well_mudda_take_sic 4 months, 3 weeks ago

Yes, but Minnis and the other buffoons in his cabinet must all be booted out for this most treacherous act.

1

BahamasForBahamians 4 months, 3 weeks ago

At the rate mate Minnis is going.. You can get elected as PM the next election.. A drive out Westridge should be in order.. Brave must be throwing a champagne party.

0

Truism 4 months, 3 weeks ago

WOW! The price of noodles and Vienna sausage jjust gone up.

1

Well_mudda_take_sic 4 months, 3 weeks ago

Repost:

Here are the well known ingredients of a downward economic death spiral that Minnis and Turnquest refuse to accept:

Higher taxes results in more private sector business failures;

More private sector business failures results in greater private sector unemployment;

Greater private sector unemployment results in more social welfare costs plus significant growth in non-productive public sector employment caused by dumb politicians trying to buy votes on the backs of private sector taxpayers faced with ever increasing taxes;

Ever increasing taxes on the private sector results in even more business failures and even greater private sector unemployment;

And down and down the death spiral we go as our nation's economic well being gets flushed down the proverbial toilet by our dumb politicians who allow themselves to be led by the nose by international agencies (IMF, OECD, IDB and the like) that represent their own foreign interests without any regard whatsoever for the interests of Bahamians.

We are at the perilous mercy of Minnis (a not-so-good medical doctor) and Turnquest (a not-so-good bean counter), neither of whom is capable of passing an economics 101 class, and neither of whom is willing to downsize the head count and costs of our grossly over-bloated government / public sector. The future holds no hope for us as long as these two clowns (Minnis and Turnquest) are pulling the 'budget strings'.

1

TerenceRollins 4 months, 3 weeks ago

Barely a year in power? No achievements no real change. I guess the 'People's Time' was an imaginary first 12 months. Cabinet millionaires need not worry though. Please step forward DNA - assuming there'll be anyone left in the Bahamas who can afford to live here and stay to vote.

2

Well_mudda_take_sic 4 months, 3 weeks ago

To add insult to this treacherous hike in VAT injury they have inflicted on us, Minnis and the other buffoons in his cabinet have introduced budget policies that will effectively exempt most in the illegal Haitian immigrant community from this outrageous increase in VAT. Simply unbelievable and unbearable! We, the Bahamian people, have been betrayed by Minnis as the devil incarnate who has now fully revealed that he does indeed have two horns coming out of his head. It was supposed to be "the people's time", but we, the Bahamian people, find we have been betrayed and royally screwed - not by the PLP but by the FNM this time. We cannot allow this foolish and most harmful increase in VAT even if it means we must march en masse to parliament to do whatever needs to be done to right this terrible wrong.

3

joeblow 4 months, 3 weeks ago

And this is exactly why I am against income tax. Politicians never keep their word (except Trump it seems), taxes always go up, they never go down and government waste continues unabated.

Meanwhile I still don't know how much they have collected in VAT this year and where it has been spent!

3

sheeprunner12 4 months, 3 weeks ago

Even with 12% VAT .......... The Bahamas is still a low-tax jurisdiction ....... But it is a HIGH cost-of living society .......... and people who are not financially educated or prudent ......... Hence our societal "hand-to-mouth" dilemma

1

Well_mudda_take_sic 4 months, 3 weeks ago

Taxes, duties, fees, etc. on individuals with a gross income under $50,000 now greatly exceeds the tax burden imposed by developed countries with a lower cost of living. As for small and medium-sized businesses in our country today, many of them can be expected to close their doors or fail. The VAT increase to 12% is the nail in the coffin of a nation that was still struggling to cope with the introduction of a 7.5% VAT.

3

realfreethinker 4 months, 3 weeks ago

Sheeprunner12. It's unfortunate our people don't educate themselves , therefore people like mudda will be seen as the smart ones. It's no secret that vat was going to be raised. Brave them were planning on raising it to 15% had they won. I just hope we soon get around to eliminating all duties. Our problem is not that we are over taxed,but we have governments that waste it.

4

sucteeth 4 months, 3 weeks ago

Ignorance and lack of education are the important part. We inherited this from the PLP and their thievery and mismanagement of the country and our money !! Lets see what Pudgy has to say now ..

1

licks2 4 months, 3 weeks ago

I don't see him/her as smart. . .that buffoonish political sham don't like to tell truth. . .but I ger wait until these settle down and use their brains rather their hates!!

0

John 4 months, 3 weeks ago

One day y’all will get it Hubert Minnis is the prime minister but he doesn’t run The Bahamas. Just like Barak Obama was president, he didn’t run the United States. One step outta line and he would be dead like the young boy Marvin Dames policeman put 18 holes in on a blessed Sunday, go to Church morning.

0

DonAnthony 4 months, 3 weeks ago

Make no mistake about it this is a massive tax increase. The impact has been somewhat mitigated on the poor through exemptions, but still likely an overall increase in taxes for even them. The middle class will have no such luck and will bear the brunt of this increase which not allowing for exemptions etc will bring in an extra 375 million per year.

I can live with this if the govt continues to downsize the civil service and our debt service ratios begin to fall. We have to get recurrent govt expenditure under control. Perhaps this saves us from devaluation down the road. If we are to bear this pain I want to see government downsized in a meaningful way. Otherwise the FNM will pay the price for this in the next general election.

4

Well_mudda_take_sic 4 months, 3 weeks ago

Where is your economic common sense? This VAT hike is a further decease in the purchasing power of Bahamians which is nothing but a disguised devaluation of the Bahamian dollar.

1

OMG 4 months, 3 weeks ago

Actually he is talking commonsense. It is you who have your head buried inthe sands of denial. That being said can you offer a non painful method of solving the pre existing financial mess that the FNM inherited ?.

0

Well_mudda_take_sic 4 months, 3 weeks ago

By definition austerity measures to right the past willy-nilly spending of past governments must involve pain for Bahamians, but not the added taxation kind of pain....yet many Bahamians like you are foolishly seeking a "non-painful method". Please, grow up. Nothing good in life comes without perseverance and pain when necessary and it's most unfortunate Minnis and Turnquest seem quite willing to ignore this fact. More taxes is the foolish politicians easy road until they run out of road.....and then the people suffer like they have never suffered before. Just imagine one day being without tooth paste and a tooth brush or toilet paper to wipe your butt.

0

licks2 4 months, 3 weeks ago

You know the only persons here who get "jooked" is the gaming boys!! You focused on the VAT. . .but how conveniently you forget them other decreases. . .this the poor peoples tax time. . . they are the bigger voting bloc. . .

0

DDK 4 months, 3 weeks ago

They DO look full of themselves, Comrade!

0

OMG 4 months, 3 weeks ago

I don't like the idea of a Vat hike any more than anyone else but bear in mihd that in the UK it is 20%. That said never heard the critics complain when the PLP had a continious hiring spree, exorbitant contracts given without bids, a 7 million + hole in Palmetto Pojnt for a hospital that the country coild never afford and on and on. Face facts this country is deep in debt and painful medicine now may if the revenue is properly spent reap benefits down the road. Times are tough yes but try living in Greece or Italy where national debt is beyond belief. In the UK May 29th was the first day of the calender year where the ciitizen worked for himself . In other words the average citizen worked to pay taxes for for almost 5 months. One final point despite Mr know it all Davies the PLP would have had to do the same or reserve rooms for the IMF.

0

sheeprunner12 4 months, 3 weeks ago

So true ......... The FNM is trying to keep us out of the hands of the IMF where many Third World countries find themselves ...... That is what Perry and his PLP 2.0 crew did to this country since 2002.

0

Well_mudda_take_sic 4 months, 3 weeks ago

Please.....don't start comparing us to other countries (even more developed ones) suffering from really dumb economic and social policies.....to do that you may as well simply cut-to-the-chase and compare us to Haiti, which now seems to be the type of country Minnis and Turnquest want us to become!

0

OMG 4 months, 3 weeks ago

Without drastic action you may get your wish. What is your sooution?

0

Well_mudda_take_sic 4 months, 3 weeks ago

We need serious austerity measures to get our cost of 'way too big a government' under control. By definition austerity measures to right the past willy-nilly spending of past governments must involve pain for Bahamians, but not the added taxation kind of pain....yet you seek a a "non-painful method". Please, grow up. Nothing good in life comes without perseverance and pain when necessary and it's most unfortunate Minnis and Turnquest seem to think like you! More taxes is the foolish politicians easy road until they run out of road.....and then the people suffer like they have never suffered before. Just imagine one day being without tooth paste and a tooth brush or toilet paper to wipe your butt.

0

Porcupine 4 months, 3 weeks ago

OMG, The solution is staring us in the face. It is called progressive taxation. We currently have the worst of the worse regressive taxation. At some point, the people have to ask the rich to make some sacrifices. Presently, this world is catering to the rich while the working people suffer. This is the lack of education, by the educated, that is killing us. Do your homework.

0

licks2 4 months, 3 weeks ago

Do you ever think anything except politics??

0

TalRussell 4 months, 3 weeks ago

Ma Comrade, eventually there will come a day before the 2022 general election - when the Imperial red shirts cabinet will be forced to stop blaming their own governance on the PLP. Thirty-two red MP's and the PM were witnessed thumping on their House desktops while KP gave his pitch on fleecing the people as the other red shirts MP Speaker, looked on... all looking confused as to what people, KP was talking about... how can the Bahamalander dollar, possibly sustain its tied to the US dollar status?

0

Clamshell 4 months, 3 weeks ago

The UK? Really? People in the UK get reliable power and water, good health care, excellent schools, public transportation, and police who do not start shooting at anything that moves. Please. Spare us comparisons to the UK.

0

DDK 4 months, 3 weeks ago

It IS interesting that they keep back peddling on reducing the over-bloated public sector and Government expenditure. They are, at the end of the day, just politicians, worried about the vote.

Business operators expenses have just gone up. No relief for business owner's VAT on utilities. Rents, as well as the cost of most general inventory will go up. They are increasing the squeeze on Bahamian business that they big boys can handle, but it sure puts hell on already struggling mom and pop concerns.

0

tetelestai 4 months, 3 weeks ago

DDK, I do not, for a second, disagree with you that the public sector is bloated. But, the question is, what is the alternative. If you fire/let go/make redundant people in the public service, those let go will certainly be low skilled, poorly performing employees who do not have the ability to procure another job. In short, they are structurally unemployable. So, they are not released in the work force, without the ability to get a job, only one of two things happen: a) they turn to crime (after all, they have to eat, etc.); or b) they turn to welfare and put a strain on the government resources anyway. Simply slashing the public service does not help. Again, I wholeheartedly agree that the public service is bloated, but, really, there is nothing that any government can do.

0

DDK 4 months, 3 weeks ago

Understand, but TERRIBLY sad. They CAN, however, change their hiring practices, and the work ethics of their employees. They can also implement an employee contribution pension system. As many have said, it's not that we do not understand the necessity of paying taxes, it's what we get for those taxes.

1

realitycheck242 4 months, 3 weeks ago

That is the Best Budget presentation in the history the Bahamas. Bahamians need to bite this bullet and sell bottles if they have to make extra funds.. Look at the long term projections of how this budget will begin to turn this countries fiscal position around. In three years our depth to GDP ratio will at 52% We will have reversed ourselves from going over the fiscal cliff like so many other countries have done. .After years of PLP and FNM mis management. This ship of state will begin to turn around finally. In three years time a Black briefcase will be used to transport the budget to the house.That will be in time for the next election and this red shirt gov will have a lot to brag about, The world and all the international agencies IDB, OECD FATF IMF and the world bank The rating agencies will all be singing the praises for the good fiscal work that has done for 2018 to 2021. So Bahamians i implore you to do what you have to do to swallow this pill and think about the burden this budget is removing off the backs of our grand kids.

0

Well_mudda_take_sic 4 months, 3 weeks ago

Don't be a fool. A spendthrift government like the Minnis-led one will use the additional tax dollars to grow the size of government and buy poor dumb voters through costly social welfare schemes of one kind or another. Minnis and Turnquest have shown no serious inclination whatsoever to take on the politically unpopular task of reducing the size of our government. So far it has been all about sacking the known PLP supporters and replacing them with known FNM supporters with no real reduction in the size of our bloated government. Minnis is no different than Christie or Ingraham, but hopefully we, the Bahamian voters, now fully realize this fact and will be much more careful about who we vote for in the future. Forget party politics, it's the character and integrity of your MP that counts more than anything else...even if he or she runs as an independent!

0

birdiestrachan 4 months, 3 weeks ago

The VAT increase will affect the day to day living expenses. It will be felt. every single day of our lives. is this not the same doc who did not vote for VAT. "The JUDUS"

Sheeprunner correct me if I am wrong you who are more FNM than doc and Turnquest, did Police shootings increase under the FNM Government and the new Police Commissioner ??*Strong

0

proudloudandfnm 4 months, 3 weeks ago

And government will continue to waste and spend. The incompetence will remain exactly where it has been since independence.

Idiots who think this is cool with no significant changes made in how and what government does on a daily basis need to wake up. We do not need more taxes. We need RESPONSIBLE AND AFFECTIVE GOVERNANCE.

A huge percentage of our people make 300 bucks a week or less. WE CANNOT AFFORD THIS.

2

licks2 4 months, 3 weeks ago

This budget is aimed just for them man. . .more money going into their pockets!! Fiscal responsibility is the theme of this budget. . .IT'S ABOUT DAMN TIME GOVERNMENT ACT FOR OUR FUTURE THAN THEIR NEXT ELECTION. . .doc don't care what yinna whine about. . .his government will fix things and then yinna can vote him out next election if ya want. . .perhaps yinna can elect PLP or DNA like their hacks on this site!!

0

joeblow 4 months, 3 weeks ago

How can more money go into their pockets when they have to pay more for everything (12% more to be exact), and if they eat breadbasket items they will end up with all the medical problems that Bahamians commonly have!

0

TalRussell 4 months, 3 weeks ago

Ma Comrade ProudLoudandFNM, a general strike harms the very people being most harmed by this red government. General strikes are not a call positive solutions... and if the truth be told the national average income Bahamaland is $248.50 per week and now they will face paying 12% VAT on top rest the 99.99% they will buy and use.

0

sirD 4 months, 3 weeks ago

12%... you must be kidding. that will put gasoline at way over $5 a gallon not to mention the almost inevitable increases on the way. Time to move out of this Dictatorship.

0

sheeprunner12 4 months, 3 weeks ago

Fifty years of Majority Rule ......... Fifty years of deficit Budgets ......... Get the picture?????

1

sirD 4 months, 3 weeks ago

No..No..No..No, they can not do this without a Referendum. The People of The Bahamas need to tell the Politicians who own this Country. If you are self employed, you pay 9.8% NIB now a 12% VAT. The prices to the end user will rise. The old, OK I will pick and deliver for Free is gone. We absorbed the fuel costs, We can no longer do that. This will trickle to the poor. I am frustrated with this new news and I doubt I am the only one.

1

proudloudandfnm 4 months, 3 weeks ago

A general strike will stop this in hours. Close everything but the hospital down. 4 hours later we'll have won.

Giving the Bahamian government more money is insane.

0

DDK 4 months, 3 weeks ago

You may just be right! They are not listening to the electorate. The 7.5% VAT put an approximate 25% increase on the cost of living. I would imagine this will be another 15%. the economy cannot absorb it. It IS fifty years of PLP and FNM that have got us to this horrible place. Our people always put up with it and ask for more. Taxation is like a runaway train. Once it starts, they just bump up the amount figure at will. WHERE IS WE MARCH BAHAMAS ON THIS ONE????????

0

rb242bs 4 months, 3 weeks ago

So now to buy or sell a house in Nassau the closing cost jump to 23.5% ?! (Stamp Duty: 2.5% + VAT: 12% + Legal Cost: 3% + Realtor Fee: 6%). I hope some good news will come tomorrow because this doesn't make sense for real estate market... Then what about Customs Duty, will you finally replace Custom Duty by VAT or we end up paying 45% + Shipping + 12% and basically paying the high price for our imported junk?

0

Dawes 4 months, 3 weeks ago

No they got rid of VAT on the house, but did increase stamp to 10%

0

rb242bs 4 months, 3 weeks ago

Thanks, I was able to peruse the 117 page of the Bahamas 2018/2019 budget, and I have to admit that even though I'm not a fan of tax raise, it's inevitable and well balanced. I applause the government for this budget and hope they will be "Transparent" about how they handle this new income to reduce the debt and invest wisely what's left.

0

bogart 4 months, 3 weeks ago

EXTREMELY DISAPPOINTED....!!!!!!!!!!!

Why keep whipping the backs of the pore....50,000 ....cant make ends meet..counting on family for help.....1 in 8 going to bed hungry......45,000.done below poverty line....2,500 get laid off..

Why pore Bahamians to have to pay for incompetance....for..by.. politicians...??????

BAHAMIANS NEED LOVE JUST LIKE THE HAITIANS IN THE BAHAMAS..!!!!!!!!

1

ThisIsOurs 4 months, 3 weeks ago

I'm sure they had to do "something". I don't think this was the "best" thing, this was the "lazy" thing to do. This govt is turning out to be one big empty PR campaign, "No VAT on corn beef"

1

BahamaPundit 4 months, 3 weeks ago

You want a riot. This is how you get a riot!!! You want to get run out the country. This is how you get run out the country!!! You want more crime. This is how you get more crime!!!

2

realitycheck242 4 months, 3 weeks ago

Wait until Brensil Roll speak about the National Insurance Contribution increases next week ...your'll aint see nothing yet

0

BahamaPundit 4 months, 3 weeks ago

Magine how this will kill the restaurant industry!!! 30% extra taxed on a meal that wasn't all that to begin with.

BRING THE BRITISH BACK!!!

3

BahamaPundit 4 months, 3 weeks ago

BANK OF THE BAHAMAS... WE WANT ANSWERS... NO NEW TAXES WITHOUT FREEDOM OF INFORMATION ACT... REDUCE PM PENSION FROM 250K TO 100K... GET RID OF BISX AND URCA... NATIONAL LOTTERY... CLOSE BAMSI AND URBAN RENEWAL... GIVE THE DEFENSE FORCE BOATS BACK!!!

3

tetelestai 4 months, 3 weeks ago

I ask in all seriousness and not at all to be snarky...why get rid of BISX? As far as I can tell they have three employees (certainly 3 employees are not causing The Bahamas to go broke). The amount of subvention to BISX is peanuts compared to other corporations. They (BISX) actually turned a profit this year (see their latest annual report). So again I ask, why get rid of BISX?

0

Economist 4 months, 3 weeks ago

Very good budget. Well balanced considering the mess the country is in.

1

Well_mudda_take_sic 4 months, 3 weeks ago

Economist, thank you for your tax increase applause. We've all voted you joker of day on what is indeed a most sad day for most of us ...... at least those of us who have an ounce of sense and some cynicism to boot!

0

licks2 4 months, 3 weeks ago

Cynicism I see plenty from you. . .now what was that other thing there so?. . .that you show little of? This budget is excellent for long-term growth. . .watch how the world bodies smile at us. . .yall always talking about how Lee Quan U turned that little dank country into a wold power house of economic growth!! Welcome to how Singapore did it. . . change ya poor business habits and lets see what happens. . .

0

MontaguMadge 4 months, 3 weeks ago

This VAT increase is more progressive than the earlier implementation. Excusing medicines, pantry items, and small electricity bills will help the less fortunate and the elderly. Exempting property insurance will encourage folks to keep insurance - pretty important at hurricane time. Bahamians expect a lot from government. In the US, the sales tax in some states is pushing over double digits. And it doesn't pay for defense, healthcare, or disaster relief. It doesn't pay for education either in a bunch of states. The most important thing - hold government accountable.

0

Porcupine 4 months, 3 weeks ago

And what about VAT on exorbitant health insurance? That is a crime. Wouldn't we wan to get people to keep their private health insurance, considering the fuc_ing disaster called Bahamas health system?

1

ohdrap4 4 months, 2 weeks ago

that point is moot. vat or no vat, most cannot affor health insurance, which would be about 60% of the average salary.

0

bogart 4 months, 3 weeks ago

Considering the mess the country is in ....why take out yinna vexation by kicking da dog ???

There are already done more pore Bahamians than rich Bahamians........many who aint like da rich .socialize together....in business together wid same politicians...childrens in college....dey dits on same Boards of Directors....all big time professionals...same organizations...........who make decions affecting each other..give contracts to eavh other......politicians depend on donations from rich business...,,,,,...related to each other.....BUT DA MAJOROTY OF THE PORE BAHAMIANS HAVE TO PAY MORE TAXES SAME RATE AS DEM TO CORRECT DERE.........SCUEREWUPS.....PAYONG TWICE THE COST FER ONE WATERTREATMENT COST IN GLADSTONE AINT FINISH.....BIG TIME BUILDING PRPJECTS IN FAMILIES WITHOUT ECONOMIES OF SCALE...AND DERE HIFSLUTIN PALS PROTECTON DEM JUST DA THREE MONKEYS...SEE NOTTIN TALK FOOL AND DUMB....COUNTLESS SLACKNESS IN GOVT ENTITIES.?NO FAMILY OR FRORND OR PARTY DUPPORTER FIRED..?BUT...BUT GET DIS COUNTLESS MILLIONS OF DOLLATS OF SUBVENTIONS...SAME BIG TIME PEOPLE SCREW UP.........PAY BY PORE MAJORITY WHO LEAST AFFORD IT...only ting pore majority guilty of is every five years voting......MUDDA SIC

0

The_Oracle 4 months, 3 weeks ago

How easily we ignore the fact that we are heading the way of Haiti and other IMF impinged countries of our own volition. Willingly. I'm impressed that KPT has impressed upon Cabinet the dire fiscal situation we have been consistently heading for since 1973. Im impressed that we finally have a Government willing to make the hard decisions that all those prior avoided like the plague. How amazing that we believe no cost is attached to folly. Unlike the personal responsibility we ( the majority?) shuck and dodge so easily and regularly National irresponsibility comes with real costs, costs which can only fall on the very people who sat back and either participated in the pillaging or sat back in silence. It has taken 50 years to get here, and it was a comfortable ride for most if not all! Time to pay the piper. Time to find some personal and national ethic and put it into practice! Is anyone happy with increased taxation? Hell no. Time to grow up and shape up! Might make the end result better! Might trigger a national realization that we have squandered our future!

0

SP 4 months, 3 weeks ago

For the FNM to suddenly raise VAT from 7.5% all the way up to 12% is totally ludicrous! Especially since it is only the small man that will carry this burden.

Why not simply follow IMF suggestions and implement an income tax so those with more income can pay their fair share of taxes?

PM Minnis is all over the place talking about making hard choices and more pain promised for Bahamians. Why not share the "pain" equally so expat blue-collar workers can also feel some of the pain in the country?

Dominicans, Haitians, Latinos, Filipinos, Asians, Africans, Jamaicans etc' continue getting a free ride, laughing all the way to the money transfer companies, while Bahamians must suffer another financial shock setting us back to an unsustainable position.

PLP to FNM and nothing has changed. Foreign workers remain untouchable while locals get screwed!

PM Minnis needs to stop the horse shyt, ass-kissing, and bull-shyting and implement a national lottery which would benefit the whole country.

1

John 4 months, 3 weeks ago

When VAT was introduced, the intent was to eliminate customs duties and stamp taxes. The scary thing is even with those taxes still being collected in addition to VAT, there is a need to introduce VAT by 66%. And when one looks at the infrastructure of the country, everything is falling apart. Drive down East Street of Mackey Street and you wonder, "Is this what we want to attract tourist to?" And almost every street in Nassau Village and Pinewood and many other residential areas and loaded with potholes. And there was additional borrowing in addition to the VAT increase. The Bible says man will work a week just to buy bread and those days are upon us in this Bahamas. Tanks bredda Minnis..Tanks K P T. tanks!

0

jamani2 4 months, 3 weeks ago

Common Sense, Please!

You can take the pepper now or later. To wait is to prolong the burn as it comes out the other end.

1

birdiestrachan 4 months, 3 weeks ago

The peoples time voters will do well to note that OBAN will not pay VAT, nor will the foreign employees.

0

rb242bs 4 months, 3 weeks ago

After few hours of anger to the VAT and gossip of rage with my friend all day long, I finally took the time this evening to read the Budget (117 pages) and honestly, I would like to thanks the government for their proposal and work. They took though the decision that won't make them popular, but the budget seems well balanced and makes sense. I hope they won't screw it by effectively delivering the promise to reduce the debt, and make the smart investment to push the country forward. But please, do deliver on your promise, don't make the situation worth, be frugal, and don't screw us with the next shot of new tax such as income tax, corporate tax, more duty, etc... You cross the fine line already, don't screw it. All the best!

0

realitycheck242 4 months, 3 weeks ago

The few comenters on here such as the_Oracle, Economist,Don_Anthony, OMG Sheeprunner12 and Licks2 who see the bigger picture of what this govenrment is trying to do I I salute you for your foresight. The rest of you need to do some soul searching, Some personal introspection especially if you have children.and have any sence of your country value, perception and standing in this world.... ask yourselves if you want this country to go the way of Greese .It is my wish that all of you would come to the realization of the main Objectives of this Budget when the fervour of your resentment dies down.

0

realitycheck242 4 months, 3 weeks ago

you naysayers and critics would read all 127 pages and come to the realization....

0

Regardless 4 months, 3 weeks ago

It would be one thing if these governments could account for the taxes they collect but they never do. The previous government bragged at how much they surpassed their projections with VAT but where did it go?

This is a major jump in tax and increase in costs for tourists as well.

Unfortunate that parliamentarians have spent like drunken sailors for decades. The impact on the social elements has only just started to rear its ugly head.

0

OldFort2012 4 months, 3 weeks ago

Debt is debt and that IT could not care less which government the "people" elect or how much less money they will have in their pocket. You could elect Jesus as PM and have all the Apostles as Ministers with God as Governor General and still nothing would change. The amount of debt would remain constant and the repayment date would remain the same.

What I am trying to say is that electing a new Government does not change any of the facts on the ground.

We have been raping and pillaging this country for 50 years. We took Majority Rule as an excuse to dip our hand in the till and have been doing it every year for 50 years. Now the bill has to be paid. PLP, FNM, DNA...it matters not. No 3 letter acronym is going to change a thing.

The facts remain: $7bn debt, yearly budget deficits, unemployable population because of lack of skills & education and a dependency culture ingrained into the collective psyche for the past 50 years. In short, we are in a massive hole. When in a hole, the first thing you should do is: stop digging!!

A responsible government would start by eliminating the annual deficit. That is stopping to dig. We can argue till the cows come home whether they should do it by lowering expenditure or increasing income (more taxes). It should be a bit of both. Which is what they are doing, I guess.

It's gonna get bad. There will be less money. People will lose their jobs. But what did you expect? You live by stealing for 50 years and all of a sudden you elect a new government and all is now going to be fine? Unfortunately, it will not be bad for a short period. It will be bad for decades. But it is the road to true responsibility and long term success. First step is always the hardest.

0

ThisIsOurs 4 months, 3 weeks ago

What did I expect? I expected them to come into five from day one and start engaging people on how to get some small businesses started. But the pussyfoot end around for six months telling us they just get here and look what the other people do.

I still don't see how they're encouraging any growth. They do this dumb simple calculation if we double the tax on the webshops we should double our revenue from the webshops. It don't work like that. The webshops will either move their operations back underground as if they're not doing that already or people will reduce their gaming

We are set for a price shock in the next few months. Prices may go up 25% or more depending. People will buy less, they'll collect less than expected, so they'll lay off more people than they intended, Then they'll come out and say oh we didn't expect all that, we have to find a way to protect the consumers.

0

professionalbahamian 4 months, 3 weeks ago

Well what a disconnected approach.

The way forward was Introduce VAT, reduce Government size!, reduce government employment over a reasonable period!, and reduce government spending!, and eliminate import duties to match VAT revenues. Leadership needs to be honest with themselves - they have no intention of reducing the size of government or eliminating import duties- so quality of life suffers and private sector will shrink. Which idiot would believe that eliminating VAT on a $100 or less power bill wis going to help - what an insult. What are revenues relating to VAT collected on food? Why would Government want to control what we eat?! - Eliminate VAT on all food! Tax alcohol and tobacco! Tax Gambling and make a national lottery! Remove VAT from health and life insurance and allow people to keep their policies! Remove VAT from commercial rents! Separate tax revenues to deal with relevant shortfalls - (gas tax for road repair, utility VAT for distribution repair etc, garbage fines! for garbage collection on the sides of the roads etc!)

Stop thinking of capital spending at all until things are in order!

If you want more VAT you have to do your part first! Come on!

2

SP 4 months, 3 weeks ago

The VAT increase will definitely have a negative effect on the economy. The government needs to stop dodging the elephant in the country and get rid of non essential expat blue-collar workers and free up those jobs for Bahamians, which will relieve downward pressure on foreign reserves and give the country an immediate financial boost as more Bahamians spend in the local economy.

They also need to focus on growing the economy by incentivizing partnerships in the tourism sector by inviting successful investors from resort cities in North America to expand their theme parks and other tourist-related fun amenities here. The Bahamas is a great place but there's still nothing do here compared to North American resort destinations.

Taxing us to death will only force more business closures, increase unemployment, and make life that much harder for a larger portion of people.

0

OldFort2012 4 months, 3 weeks ago

I wish that it were true that there are hundreds or thousands of qualified Bahamians just waiting to take the place of some expat worker...but it just ain't so. Sure, they are willing to take the salary, just not willing to do the work that would justify that salary. Let us at least look the truth in the eyes and stop deluding ourselves.

1

Aegeaon 4 months, 3 weeks ago

I'm pretty much sorry. After on how other greedy Bahamians destroyed so many great businesses because of poor practices and how Bahamians have the criminal mentality to steal from anyone they encounter, that dream is completely impossible. There's also NO ventures here to help new local or foreign business get anywhere unless you have a global business presence and vast amounts of disposable income to begin with.

The Bahamas and Bahamians need to change from their ways before we can control our wealth and create businesses.

0

archie316 4 months, 3 weeks ago

Everything goes up except PAY....at the end of the day who is looking out for the Bahamian people. Is it NOT the PEOPLES TIME....or have we not reach that stage as yet.

0

The_Oracle 4 months, 3 weeks ago

No Government or regime ever concedes defeat or failure, Most do not learn from prior mistakes either. Usually they collapse completely. Taking their citizens assets with them. In many cases people lose their lives fighting the inevitable oppressors, always too little too late. The only assets any Government has to burn or chew through as they chase their particular form of folly are yours! Undermining the value of your earnings is no different than the taxing or appropriation of your earnings. Our successive Government administrations have done all of the above well, where they have failed completely is in how they spend and waste and thieve. Most are outraged that Government cannot continue to push the bad further down the road, the way many of us do in our personal lives, and as taught by Government. Yet another Self determination failure. For the last 50 years we have lived in a wonderful illusion, Self determination, Independence, Sovereignty, Nationalism mixed with tribalism, free of responsibility for our children, debts both personal and public, neglect of the important things. Who in their right mind would think no day of reckoning was due? That this Administration will be shot for being the messenger only serves to highlight our national shortsightedness. Can't wait to hear what the opposition has to cry about! Fearless flying Freddy will no doubt howl the loudest!

0

proudloudandfnm 4 months, 3 weeks ago

A hard choice would be to take a chance and eliminate duty. Reduce electric. A hard choice is not raising taxes with no change in our government. Government will continue to be sub par, corruption will continue, overstaffing will continue. Hitting us with more taxes without significant reform is lazy governance.

The FNM screwed us.

1

bogart 4 months, 3 weeks ago

How is the no VAT on water bill less than $50 going to work if the standatd rental fee for water meter is $36 and the standatd Sewage chatge is $37.70....??....this seems to benefit only homeowners using cesspits....out house...latrines...???...which causes pollution contamination.?.

1

jamani2 4 months, 3 weeks ago

Thank God! Finally, responsibility, accountability, and burden-sharing has reached our beloved shores. Peter, now we have to make the rich pay their fair share. Give everybody a shovel to help dig us out of the mess that the previous regime has put us in. Finally, let's chase down all the millions hidden away by the red shirts and put them back in the people's coffers.

0

ThisIsOurs 4 months, 3 weeks ago

Make the rich pay their fair share? Didn't you see? The poor get 12% VAT and coin washing machines and planes are duty free

0

Well_mudda_take_sic 4 months, 3 weeks ago

Minnis, Turnquest and all the other FNM politicians opted to take the easy road of simply increasing taxes. Like past PLP and FNM governments, the Minnis-led government steadfastly refuses to take the hard road of austerity measures which would entail significant reductions in our bloated public sector head count and related payroll/benefits. They have put a lot of lip stick on the 12019/20 budget pig (or should I say 'tax hog') in an effort to try pretty it up as much as possible. But the 2019/20 budget remains just that - a tax hog! And we all know what happens to an already well-fed tax hog when you feed it even more taxes - it grows quickly and exponentially. Yes indeed, by taking the easy road of more taxes, our spendthrift Minnis-led government have effectively acknowledged they have every intention of further growing the size of our already grossly bloated and largely non-productive public sector. We are about to see the public sector hog fatten up to a humongous size, to the point where there will be no hope for sustainability much less growth in our private business sector.

And to add real insult to injury, Minnis and Turnquest were originally proposing to increase VAT to 15% but decided at the very last minute that it would be more politically prudent to do this in a phased approach way, i.e. 12% VAT now and 15% VAT next year. And to think that both Minnis and Turnquest promised us time and time again on the FNM campaign trail that his FNM government would not introduce any new taxes but rather would focus on removing the huge amount of waste, fraud and corruption in the public sector, thereby making the size of our public sector appropriately lean and productive to much better meet the needs of the Bahamian people. It seems Minnis and Turnquest alike are now nothing but bold two-faced liars and traitors!

1

sheeprunner12 4 months, 3 weeks ago

For ALL of you who say that the FNM was wrong for increasing VAT ........ Consider this:

  1. They could have introduce Income Tax on the same sliding scale format as the new webshop taxes?????

  2. They could have cut Government expenditure by $400 million (how much pensions, jobs and rents would that be)????

3.They could have sold off SOEs and make that $400 million ..... BPL, Bahamasair etc.

  1. They could have increased Sin Taxes on sodas, rum, cigarettes, sugar, junk food, fast food etc to make up the $400 million.

WATSAYU???????

0

ThisIsOurs 4 months, 3 weeks ago

They could have tried to encourage innovation and generate some growth. It een hard.

0

sheeprunner12 4 months, 2 weeks ago

Do not say something vague like "innovation" ...... explain your point.

0

ThisIsOurs 4 months, 2 weeks ago

Innovation. I.n.n.o.v.a.t.i.o.n. Creating something new

0

ThisIsOurs 4 months, 2 weeks ago

The answer is in growth. And we need to stop the lip service we give to innovation. There is no magic age or sector of society from which good ideas spring up. If you have 20 million for innovation then seek some innovators. If you want to spur innovation get behind the best ideas not some arbitrary criteria that can use for your campaign PR rhetoric.

My suggestion break that money into two groupings, one for jobs programmes in that you can target "young people", then an open grouping for the best innovations. Honestly @sheeprunner, why can't they think of that???? Watch shark tank, there's no magic age for good ideas

Close your eyes , take off your party colours and get behind GOOD IDEAS if you want to turn this economy around

0

BONEFISH 4 months, 3 weeks ago

The FNM's budget give exemptions to interest groups also. The BMDA got theirs.The over the hill community got theirs. The clothing and shoe stores got theirs. They raise the vat rate and made the vat tax system more complex.I have three questions.Since they came to power last year, how much vat revenue did they collect and how was it spent? Also how will this increase in the vat rate coming July affect this economy?

0

Chucky 4 months, 3 weeks ago

there is no squeeze on business directly. What they pay out in vat they get back. The only problem for business is that if you happen to cater to the poor, well the poor won't buy as much when they factor in the additional vat. However if you cater to the rich, well this additional 4.5% won't mean a damn thing, and won't harm ur business.

0

sheeprunner12 4 months, 2 weeks ago

Yes ....... all the businesses do is collect the VAT ....... But this is a very misleading name for a tax that does not really tax any value-added. We make very little in this country to tax any value-added ........ this is a consumer tax.

0

ThisIsOurs 4 months, 2 weeks ago

@Chucky, I can imagine that that is exactly the conversation that KP and Johnson had. "this won't hurt the suppliers, they get their money back".

There's a couple of things wrong with that, I remember clearly retailers talking about all the costs they had to carry related to the VAT implementation explaining why prices rose MORE than 7.5% in response*. hiring accountants, deciding on VAT inclusive or exclusive pricing. Displaying the VAT next to each item. Can you imagine a gigantic operation like Kelly's if they opted for VAT inclusive pricing? They now have to reprice every single item in their inventory, wait for it...in one month. In addition these guys have to pay VAT on utilities and insurance! 7.5% of 100,000 is not a drop in the bucket.

A fiend just posed another scenario, what about suppliers who've entered into forward contracts with the buyers expecting to receive goods at a certain dollar value? They're doing basic accounting in that office when we need ateam of strong economists and financial analysts who understand relationships.

I don't get the impression that Johnson or KP thought this through, I think their press circuit was hastily thrown together to combat the fury from consumers and retailers that they somehow did not see coming. You can get Afro fir that from their little "no VAT on corn beef stunt", somehow in bizarro world, they actually thought that that would make people happy.

You referred to it as a "little 4.5%", but I know even as a consumer you've done this before, you've suffered price increase after price increase until that breaking point when you say uh uh, that ain't worth it, it's cheaper to buy abroad. I suspect KP and Johnson are going to be very surprised with the contraction they've initiated. And if I'm wrong I'll apologize to you too.

2

Well_mudda_take_sic 4 months, 2 weeks ago

Minnis and Turnquest should just think for a moment about the number of Bahamians who are going to die sooner rather than later as a result of the recent hike in VAT to 12%. There are already way too many struggling Bahamians who simply cannot afford any additional increase in their cost of living. The "Have Not" Bahamians with already poor diets must now endure an even greater proportion of meals consisting of VAT-free unhealthy foods. Disadvantaged elderly Bahamians will now have to forego buying even more of their prescribed medications in an effort to help buy unhealthy VAT-free foods to feed their poor hungry children and grandchildren. Down and out Bahamians must now do without so many things necessary for a healthier and longer life just to be able to afford to buy a few gallons of gas each week to try keep their jobs in an over-taxed shrinking private sector, where employers are being forced to cut their payrolls or go out of business. We are all going to pay a dear price (some of us the ultimate price) as a result of Minnis and Turnquest taking the easier road of additional VAT rather than the much more politically unpopular road of austerity measures. Austerity measures were the only way for our nation to go for numerous sound financial reasons. But no, Minnis and Turnquest just could not resist taking the easy road of additional taxation, just as corrupt politicians before them have done. The additional 4.5% VAT will most assuredly go the way of the initial 7.5% VAT, i.e. it will be squandered in growing the size of the public sector. Minnis and Turnquest have betrayed the solemn promises they made time and time again to registered voters while on the campaign trail. They repeatedly promised no new taxes and serious austerity measures to reduce the size of our grossly over-bloated and non-productive public services sector. Their betrayal of the voters is tantamount to treachery of the highest order and is guaranteed to cause hell on earth for many "Have Not" Bahamians despite all of the lip stick they tried to put on the lips of their "Tax Hog"!

And to think Turnquest had the temerity to say: "We did what we had to do because we could no longer afford to kick the can down the road as previous governments have done." Well that's exactly what he in fact did do, with the full blessing of Minnis: HE KICKED THE CAN DOWN THE ROAD!! Forget serious austerity measures aimed at a much needed tightening of our public sector belt - these two bozos, Minnis and Turnquest, have exposed themselves to be hell-bent on further growing our public sector through added crippling taxation of private sector businesses and all Bahamians alike.

0

nomoretaxes 3 months ago

just look at those dum pigs. The main problem is their low iq.

You can easily halve government spending in the bahamas.

More taxes = more problem and corruption, thats what these guys like. Satanic freemason scum

No man has the right to tax another.

A good government makes profit not taxes

They can legalize weed let the bahamians grow it and sell it in gov shops and tax that, than everyone wins.

0

Sign in to comment