The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

An ex-Abaco Chamber of Commerce president has called for The Bahamas to introduce a national lottery as a means to raise extra revenue and ease the burden of VAT and other taxes.

Daphne DeGregory-Miaoulis, also proprietor of Abaco Neem, said that although the Government has eliminated VAT from unprepared food items, farmers such as herself must still pay the tax on imports for their business which will produce “the food that eventually is going to be VAT free”.

“So if I'm a farmer growing onions, and I have to import things, again, related to the sale of those onions, I'm paying VAT, freight and all that but then when this goes to the food store, the food store can't charge VAT, or I, as a vendor, can't charge VAT, but I'm having to pay it up front,” she added.

Mrs DeGregory-Miaoulis added that if the Government were to introduce a national lottery, which has proven to be “ a lucrative business” in other countries, it can generate extra revenue.

“We wouldn't even have to pay VAT if they increased rates in categories that don't affect the lower to middle income bracket households,” she said.

“Since they're allowing gambling houses, I think the Government should have a national lottery, because the national lottery could generate all the income that any VAT tax - or more income than the VAT tax - is generating. 

“And I'm not suggesting that gambling is the way to go, but they've clearly allowed the gambling houses to operate. The gambling houses have also proven that it's a very lucrative business. And if I wanted to gamble my money, and I knew that I was gambling, it was in a government-operated agency, and I lost, well, you never really lose if the money is going back to the people,” Mrs DeGregory-Miaoulis said.

“And they've been recently talking about having a moratorium so there's no more gambling houses allowed to be created. But I think that they've given those gambling houses a lot of protection long enough. And if I were in government, I would certainly be looking at a national lottery as a way of generating revenue for the country that everybody can benefit from.”

VAT should have never been placed on food items or medication, Mrs DeGregory-Miaoulis argued. Describing the Davis administration’s move regarding VAT removal on unprepared foods as “an election blur”, she challenged how long the change will last and how the Government plans to offset these costs.

The ex-Chamber president also called for more transparency regarding VAT, noting the Government works for the Bahamian people and owes them an explanation on how and where tax monies are being spent.

“I need to know where my VAT money is being spent,” she added. “We need a VAT account that is clearly available and easily accessible to the people who are paying VAT. I'm paying you VAT, but I can't see how you're using that money. That is unfair, and they need to stop juggling this 'it's important. It's not important.' It's extremely important. People need to know how their tax dollars are being spent. Bottom line.

“It's like hiring an operational manager for your business, giving them a budget of $100,000 and then not making them account for how that $100,000 is spent. No business person would do something like that. And government is a business, and we're the owners of the business. They're working for us, but they're not accounting to us for anything that they're spending. That's not fair.”