The Tribune

BY FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Opposition senators yesterday urged the Government to extend its annual VAT holiday beyond school supplies to gasoline, arguing that a projected $200m-plus fiscal surplus gives it room to provide temporary relief from rising fuel costs.

Speaking during the Senate debate on the ‘Speech from the Throne’, Senator Arinthia Komolafe said the Government should provide temporary fuel tax relief as global conflicts continue to place upward pressure on energy prices.

"We know that in the upcoming weeks we hope that we will continue the tradition of the VAT holiday that is extended on school supplies, and we would petition that that holiday is extended to other items, including gas," she said.

"While we cannot have control over the conflict that is taking place in the Middle East... we can do whatever is possible for us to do here on the local front. If that means taking a discount or giving up some revenue for a defined period at the pumps for Bahamians, then we should do that."

Mrs Komolafe argued that the projected fiscal surplus gives the Government room to provide temporary assistance. "Might I remind the chamber that there is a projection of a $200m-plus surplus in the next fiscal year, and so I think it's possible,” she added.

The Opposition senator also repeated the FNM's criticism that VAT on unprepared food should be restored to zero-rated status rather than remaining exempt, arguing that retailers cannot recover input taxes paid under the current system and ultimately pass those costs to consumers.

Turning to digital government, Mrs Komolafe said the MyGateway platform has failed to deliver on its promise of providing efficient online public services. "The e-government MyGateway has been a welcome development, but it's not lived up to its potential," she said. "I tried to use it on multiple occasions. I find myself still going into the establishment to conduct the work that they said is online."

Mrs Komolage added that she once received an e-mail informing her an application was under review three months after submitting it. "If I had to wait on that, madame president, I would be in contravention of the law."

The Opposition senator also urged the Government to ensure adequate safeguards accompany plans for a national digital ID system and proposed artificial intelligence (AI) legislation, arguing that data protection and security concerns must be addressed without stifling innovation.

She also criticised the pace of governance reform, noting the full implementation of the Freedom of Information Act (FOIA) remains incomplete alongside several other reforms promised by the Government. "The implementation of FOIA should be prioritised by the Government during this term," Mrs Komolafe said. "This should be part of the implementation of a broader good governance framework."

The Opposition senator acknowledged Finance Minister Michael Halkitis's indication during the Budget debate that additional funding for FOIA implementation is provided through other spending allocations, but said the Government must now demonstrate tangible progress.

She added that the Opposition will closely scrutinise proposed legislation on competition policy, investment incentives, land adjudication and land registration to ensure such reforms ultimately benefit ordinary Bahamians rather than "a select few”.