The Tribune

EDITOR, The Tribune.

Comments by a leading manager indicates that removal of the exemptions and returning VAT on Insurances will have a double-edged sword for Government... isn’t the Government Health Insurance some $100m premium so 10% = $10m VAT payment.

Yes, agreed the NZ consultants told the then Government 7% no exemptions and met with the FNM and DNA leadership and told them if you get into Office leave the VAT formula alone... never play with exemptions... well the FNM meddled with exemptions everywhere and increased basic VAT from 7% to 12%. Key politically they exempted all bread basket items.

Is it possible to put some logic into this proposal?

If Government will cause additional costs of a minimum of $10m just for health insurance can government afford that? No, better exempt Government, yes, Government will not be liable to VAT on Insurances except motor vehicles.

Bread basket items... I am sure the food industry can give the Minister detailed statistics as to what items were sold under the higher VAT rate 12% and what will be at 10%... ask.

The media has not given much coverage of the fact that a recent Central Bank securities offer was under subscribed by 60% and the Central Bank had to pick up that unexpected cost. Media, investigate as this sets an issue borrowing USA’s is probably a minimum of 10% and now to get B$ Securities sold Central Bank is going to have to offer much higher interest rates.

The old adage KISS — keep it simple stupid might be good advice as we see if we can get through these rough waters.

A K MAJOR

Nassau,

November 1, 2021.