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Davis: VAT cut coming - once the dust settles

PRIME Minister Philip “Brave” Davis.

PRIME Minister Philip “Brave” Davis.

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.met

PRIME Minister Philip “Brave” Davis said his administration will work on implementing campaign promises such as increased minimum wage and reducing value added tax to ten percent “as soon as the dust settles”.

Speaking to reporters yesterday, he noted the administration has to put certain things in place.

“As soon as the dust settles,” Mr Davis said.

“We are still putting our government and pieces together as soon as we get to the actual business of governing, which requires a structure to be put in place, meaning the proper personnel, you’ll see us complying with the promises we made.”

 The Progressive Liberal Party’s 10-point plan in its Blueprint for Change includes a promise of a reduction of VAT and the recommendation to the National Tripartite Council that it move towards a minimum wage of $250 per week. The PLP has also promised to build a new hospital. 

 The opposition Free National Movement has poured water on some of the promises, saying the country’s finances and economic situation will make them difficult to achieve. On Wednesday, former Prime Minister Dr Hubert Minnis called the pledge to build a new hospital “impossible.” 

 Asked to respond to this, Mr Davis said, “I’m not going to be engaged in any criticism of what we can and cannot do, just watch and see.”

 Asked what he thought about the FNM’s council giving Dr Minnis the go-ahead to stay on as party leader until a new leader emerges from a convention in November, Mr Davis made it clear he is not involving himself in the FNM’s “internal issues” and will not be distracted. 

 This comes after the party suffered a crushing loss in the general election and, according to party insiders, Marco City MP-elect Michael Pintard was seen as the frontrunner to succeed Dr Minnis for leadership.

 The prime minister did not seem fazed when asked about Dr Minnis leading the party in opposition.

 “That is their challenge. I’m not going to get involved in their internal issues. We have work to do . There’s much work to do. This country is in dire straits, both economically and from a health crisis. Our health infrastructure is collapsing and we need to address these issues. I’m not going to be distracted by what they’re doing.”

Comments

tribanon 2 years, 7 months ago

Davis said his administration will work on implementing campaign promises such as increased minimum wage and reducing value added tax to ten percent “as soon as the dust settles”.

I don't remember him making his pre-election promise to reduce VAT conditional on the settling of any kind of dust.

Davis said, "The opposition Free National Movement has poured water on some of the promises, saying the country’s finances and economic situation will make them difficult to achieve."

And that pathetic worn out excuse for not making good on his promises certainly won't carry the day. LOL

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Cobalt 2 years, 7 months ago

Lol. Well this should be very interesting! Davis and the PLP are already back-peddling on election promises. It’s beginning to look like the Bahamian people got duped again! This five year sitcom should be fun! Where’s my popcorn?!! 🍿

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Cobalt 2 years, 7 months ago

So now everything is beginning to take form! Give friends and cronies high profile jobs while blaming the FNM for not being able to deliver on your campaign promises!! Hahaaaa!! Boy oh boy!! This will be fun!! Davis played the Bahamian fools like a fiddle yet again!! Maybe I should get into politics! It’s the gift that keeps on giving!!

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Sickened 2 years, 7 months ago

The dust may settle in four and a half years. Just in time to try and swing voters.

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M0J0 2 years, 7 months ago

I think a lot are blind to the state the fnm left this country and in 4 yrs nothing but billions borrowed with not a dam thing to show.

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GodSpeed 2 years, 7 months ago

I'll believe it when I see it. 😂

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whogothere 2 years, 7 months ago

Disaster unless you have another revenue supplement. Corporate Tax? Stiffer Property tax? Devaluation of the B dollar? Oh I know you're going to start paying government employees in digital Sand Dollars.

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FrustratedBusinessman 2 years, 7 months ago

For starters, they need to crack down on RPT delinquents. What happens when you don't pay your property taxes in the US or Canada? Your property goes up for sale. No reason why we should just leave millions in revenue just sitting on the table not being used. Lyford Cay can afford to pay more as well (or even just getting some of the residents there to pay would be a start). Business already pay a corporate tax in the form of business license fees, it is just set up that way to separate between domestic companies and IBCs.

With VAT being a consumption tax, basic theory is that consumer spending will go up if prices are dropped. It is why I said raising it to 12% was a horrible idea in the first place; growth was killed off by such a sharp increase as people started showing greater frugality with their earnings. If prices drop from a VAT decrease (a lot more factors to consider besides VAT, especially with imports), the increased spending might help make up the difference as well.

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whogothere 2 years, 7 months ago

Snowballs chance in hell a 2 % drop in vat will stimulate more economic activity than revenue lost - what math planet you living on?

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Bobsyeruncle 2 years, 7 months ago

Hey, I don't agree with you on most things, but on this I agree with you 100%.

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FrustratedBusinessman 2 years, 7 months ago

"the increased spending might help make up the difference as well."

Maybe if you read more carefully, you would notice that I did not suggest it would make up the entire amount. I merely suggested that it may help to stimulate further spending and compensate for a part of the revenue lost.

Truth be told, there is no way for us to tax our way out of our problems. What? You expect Bahamians who make less than 20k a year to pay 20% of their income to the government? There is only one solution, cut the costs. Stop paying a gorillian civil servants and trim down on the amount of wastage that these Ministries generate. Collect on overdue revenue. They don't pay, seize their properties and auction them off as is standard in the rest of the world. No more tax breaks for Lyford Cay. You can afford to pay more RPT if you own a home over 1 mil in value.

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Bobsyeruncle 2 years, 7 months ago

Totally agree with your last paragraph, but what's the chances of those happening ? Also, most of those Bahamians who earn less than $20K, don't find it difficult to find the $ to buy the latest Smart Phone, Tennis or expensive hair weaves/extensions.

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Socrates 2 years, 7 months ago

My how quickly times change.. wasn’t that long ago things were so bad then Finance Minister Turnquest said the House would stop providing lunch for the few days they meet per year to address the runaway debt.

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