FNM leader Michael Pintard in the House of Assembly. Photo: Chappell Whyms Jr
By JADE RUSSELL
Tribune staff Reporter
jrussell@tribunemedia.net
FREE National Movement (FNM) leader Michael Pintard said the reduction in the Value-Added Tax (VAT) rate on food falls short of the significant relief Bahamians were expecting.
In a statement, Mr Pintard pledged efforts to exempt VAT from healthy foods will be restarted under the FNM administration as he also pointed to longstanding calls from the party for its removal from breadbasket items, medicines, and feminine hygiene products.
“Mr Davis still has an opportunity to take responsibility for this mistake and do the right thing," Mr Pintard said.
"Anything less is half-stepping.”
Mr Pintard also criticised Mr Davis's address for failing to address critical issues such as crime and corruption.
“Bahamians are still waiting for leadership that demonstrates accountability at every level of governance,” he said. “If this address is an indication of the administration's agenda for 2025, it’s clear they are already out of ideas.”
During a New Year’s address at the University of The Bahamas on Wednesday, Mr Davis announced the VAT reduction, stating it was intended to ease the burden of rising prices on families.
“We know that high prices exert a terrible pressure on families,” Mr Davis said. “Reducing VAT by 50 percent will make a difference for those with the tightest disposable income.”
The reduction will apply to all food sold in grocery stores, including fresh produce, frozen items, baby food, and snacks, but excludes prepared foods from deli sections. The measure also extends to the importation of these goods.
This policy marks a shift for the PLP, which has traditionally supported a low-rate, broad-based VAT system with minimal exemptions, praised for its efficiency and simplicity.
In 2018, the Minnis administration removed VAT from breadbasket items, including butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, bread, tomato paste, baby cereal, baby formula, soups, broths, powdered detergents, soaps, fresh milk, and mustard. However, sugar was excluded from the exemption. At the same time, the overall VAT rate was increased from 7.5 per cent to 12 per cent.
In June 2019, then-Minister of Health Dr Duane Sands announced plans to add healthy items such as spinach, broccoli, almonds, and certain fruits to the breadbasket list, making them price-controlled and VAT-free. However, these items were never officially added to the list.
Comments
birdiestrachan 2 months, 3 weeks ago
Pintard had to say something even if it is foolishness his government increased VAT 60percent then took VAT of a few items that did not benefit poor people. The brilliance of the PlP to reduce over all to 5Percent makes good sense before Pintatd it use to be 7AN AND HALF perecent. Poor fellow he just runs his mouth 100 miles per hour while his brain is idel in park
ExposedU2C 2 months, 3 weeks ago
Pintard is another one who can't do basic maths or is lacking in common sense. He could have easily attacked Davis's reduced VAT rate on retail food sales by food stores on the grounds that it would increase our national debt by at least $120 million per annum assuming the average person spends at least $500 per month on food purchases at retail food stores. See the basic maths below.
Typical incompetent Halkitis says reducing the VAT rate on retail food store sales would cost government $30 million per year based on current food prices. But the basic common sense math below proves just how foolishly absurd and incompetent this supposedly educated moron really is.
$30 million divided by 5% VAT reduction = $600 million of total retail food store sales per year attracting a VAT rate, i.e., 30,000,000 / 0.05 = 600,000,000.
$600 million divided by 400,000 people = $1,500 of total annual food store purchases by each Bahamian/resident of The Bahamas on average, i.e., 600,000,000 / 400,000 = 1,500.
So Halkitis would have you believe your annual food store costs and the annual food store costs of all other citizens/residents of The Bahamas is on average about $1,500 which equates to about $125 per month. Most of us spend at least four times that amount each month at the food store which means the total cost to government of this VAT rate reduction will be at least $120 million per annum at current food prices, i.e. 4 times Halkitis's ridiculous $30 million estimate.
Halkitis's lack of common sense is clearly only exceeded by his stupidity. This man should no involvement whatsoever in our country's finances. And the same goes for that other ding bat affectionately known as Always Angry Simon Wilson.
Pintard's failure to point out these facts on the floor of the HOA also does not speak well for his basic maths skills and common sense.
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