The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Tax Coalition co-chair yesterday called for Parliament to delay or cut its standard summer recess to ensure the Value-Added Tax (VAT) Bill and accompanying regulations are passed, stating: “We really need to get going”.

Gowon Bowe told Tribune Business that with Parliament now likely eyeing its summer recess, it was critical that the Government bring the VAT legislation before it in the next six to eight weeks.

“If we don’t do a lot in the next six to eight weeks, we would be right back in the same situation we were facing when we were looking at July 1 as the implementation date, with the businesses community again saying that they don’t have enough time,” said Mr Bowe.

“This is the time when the [Parliament] usually goes into recess. I think the best option at this time is an abbreviated recess to ensure that certain things get passed. We still have not gotten the critical elements. There is no legislation, no regulations on what will be exempt, or what is ultimately going to happen. We need to urge the Government to be proactive.”

 Mr Bowe added: “There is a concern that time isn’t on our side in that regard. We understand that there was a lot going on in the Budget, but now that is out of the way, this is the most critical time in terms of our fiscal  course of action. We have had some casual conversations with the Financial Secretary and he had indicated that they were just waiting on Cabinet now.”

John Rolle, the Ministry of Finance’s financial secretary, recenltly confirmed to Tribune Business that VAT preparation/readiness efforts were being delayed by the wait for “final directions” from the Government.

“That you will see very shortly,” Mr Rolle replied, when asked when the Government would re-start its campaign to educate the private sector and Bahamian public on the finer details of the 7.5 per cent tax.

“That is something we are agreed to begin to deliver this month,” the Financial Secretary added. “I can say that the Government is currently reviewing the draft of the legislation, and that sets the tone for a well-informed education campaign.

“We will await the final directions from the Government. We anticipate getting our directions very soon, and we’ll be prepared to act once we get those. We have mapped out a plan that will take us through January and beyond. There will be a lot of action there.”

Numerous businesses and private sector leaders have warned via Tribune Business that “the clock is ticking” on VAT’s proposed January 1 implementation.

“I think that the situation is even more critical for businesses that really need that big lead time, like the car dealers and the grocers, to know what’s coming. They are pleased that we have this delay but the Government needs to get going on this,” said Mr Bowe.

A whole month has effectively been wasted post-Budget, even though the Government and the private sector are at a critical point in terms of preparation and readiness for VAT.

The three-person Task Force that Prime Minister Perry Christie announced would lead the educational effort has yet to be appointed, and with key decision-makers in both the public and private sector set to depart (or having gone) on vacation, the effectiveness of such an effort over the summer months is in doubt.

The revised VAT Bill, plus accompanying regulations, guidance notes, a revised list of ‘exempt’ products and services and a new Tariff schedule have all yet to be released to Bahamian businesses and wider society.

Companies also need to know how to configure their computer systems and software, and how to interface with the Government’s system, and those with large inventories, pre-existing contracts and high accounts receivables will need the longest lead-in time