EDITOR, The Tribune.
We, the Bahamian people must realise that we cannot continue to borrow more than we are collecting in taxes. We should appreciate as one people that something has to give now, as it relates to getting our fiscal house in order. Either we increase taxes, or cut spending significantly. We do not have years left to answer that question, and to take sound and prudent fiscal action, my brothers and sisters.
So, that is why we are debating the impending institution of value added tax in The Bahamas; to help us to live by a balanced budget until further notice. This Bahamian has already accepted the reality that we need some kind of tax reform in The Bahamas, so that the government could collect more money on our behalf, in order to contain the outrageous deficit spending – year after year.
Our national debt is projected to officially double in the seven years; from $2.4 billion in July 2007, to $4.9 billion to June of 2014 – coming-up. The fiscal deficit for the past two years is reported to be more than $500m.
It is a pity that the education process on the principles of value added tax (VAT) did not begin when the Bahamian government had signed on to the various international agreements years ago, like the Economic Partnership Agreements (EPAs) with the European Union, and the World Trade Organisation (WTO). We knew it was coming nonetheless, because the Progressive Liberal Party (PLP) and the Free National Movement (FNM) made it known that value added tax (VAT) is in the pipeline. We went through the 2012 general election – recently, and the electorate voted overwhelming for the PLP and FNM.
So, what’s the problem? Who’s shocked, who’s surprised, who’s outraged and who didn’t know that value added tax (VAT) was on the horizon? The FNM has reminded us recently, that if they were elected in 2012, they had plans to employ value added tax (VAT) by 2015 or in 36 months; the PLP plans to install value added tax (VAT) by July 2014 or in 22 months of their 2012 general election victory.
I think like the pundit, Dr Gilbert Morris in the Turks and Caicos Islands, when he sounded in that nation’s context, that it was not that the TCI people are against value added tax (VAT), but it was felt nationally, that more time was needed to prepare the people for the realisation of value added tax (VAT). The United Kingdom was seen to be rushing the brush and had to eventually relent, in the wake of public pressure from every political house – and cancel the Turks and Caicos Islands’ value added tax kick-off date of April 1, 2013.
Our Prime Minister has said publicly, that he is open to delaying The Bahamas’ value added tax (VAT) execution date, which is scheduled for July of 2014. It’s a great gesture, Mr Prime Minister. Now it’s time for all Bahamian people to face the music of looming tax reform in our country, and let’s start dancing and debating. Our children and the generations yet unborn, deserve to enjoy the fruits of our wisdom.
DENNIS DAMES
Nassau,
November 13, 2013.
Comments
john33xyz 10 years, 9 months ago
Government also needs to explain to the people that the choices are either to pay VAT (or some other high tax in its place) - OR to have the Bahamian dollar devalued against the US$ - and have exchange control at the ports of entry just like in Cuba - where foreigners cannot bring US$ into the country, but instead must exchange them for B$ - but then they can exchange whatever B$ they have upon exit back into their foreign currency.
Bahamians, however, would not be able to get US$ on the street - but only through the banks via stamps in passports and through central bank approval to pay foreign invoices. Also via credit card usage - in which the exchange will take place like it does now automatically (except of course the rate will be 50% in stead of 99.5%)
We will be paid in B$, not US$ - so it will be a long time before you can go on that trip to Miami or order that flat screen from Amazon.
It's a choice - and we have to make the choice, or it will be made for us (and in that case it will be the 50% option by default).
Like the article says, though, there is one other option - and that is to cut spending. But who wants to cut spending on public clinics and public schools for illegal immigrants? Nobody. And even if somebody did - it is against International Law.
ted4bz 10 years, 9 months ago
THE PEOPLE'S CALL
Part 1 - The summery of this article
In this country a small group of individuals continue to prosper, presently most of them remain in advisory positions to the governing and opposition parties advising upon a tax method supported by the population including children, old-aged, ill and the dying. They are doing so in attempt to protect their wealth from other methods of taxations.
We must all be willing to act right now. While the jury is in 'deliberation' every Bahamian man, woman and child must extend this call right now especially to:
(A). Their representatives, the politicians, government officials and government departments: 1. No more reckless spending to further burden the public treasury and Bahamian people. 2. No more reckless projects that damages the jobs and Bahamian businesses such as road works project. 3. A call for more transparency and discipline in the management of public funds. 4. Wider sharing of information and opportunities through the media and publication in a timely reasonable fashion. 5. Less red tape and bureaucratic procedures towards Bahamians 6. More support and financial assistant to small business and startup of small business especially in farming, banking, casinos, hotels, tourism, technological and digital aspects of business. 7. More inclusion and wider participation of Bahamians in decision making and financial opportunities 8. Less foreign works and immigration permits and more higher prices for work permits 9. More educational programs for student scholarships and support. 10. Etc, etc (each person can add to this).
(B). The privilege class of wealthy individuals of this country to: 1. Please GIVE EXTRA willingly 2. Please GIVE MORE noticeably 3. Please GIVE BACK expeditiously
ted4bz 10 years, 9 months ago
Part 1A The People's Call
In every country almost every elected official and their appointees have entered the top levels administration of governments and have expeditiously bettered: 1. Themselves, 2. Families 3. Friends and 4. Closes associates
Whether the system of government is democratic or non-democratic the disproportional practice of wealth distribution festers in the system of every state almost unabated, unscrutinized and very well protected by power and/or laws.
This form of practice has survived the ages from ancient, antiquity and perhaps as far back as prehistoric man, this practice is all but new or modern. Today this form of practice is especially noticeable in third world countries where their are no middle classes compared to first world countries where there are levels of all classes, yet the practice is not exempted but less noticeable.
As always and everywhere a small group of people take advantage of the sources of information and opportunity at the top and share the opportunity selectively. The mass population are excluded, marginalized, forgotten, made unequal and non-partners in this practice. When the country experience economical difficulties and hardship the excluded, marginalized, forgotten, unequal are remembered and made equal partners to share in the burden and responsibilities.
The Bahamas does not escape from this form of global practice. The sharing of huge economical wealth and opportunities is quite noticeable and have for decades controlled by a small group of Bahamians at the top of the financial ladder without trickling down to the average Bahamian.
Yet this practice of a few successful Bahamians is happening at: 1. Great cost and starvation to the public treasury. 2. The country resources with very little noticeable improvements. 3. Little or no benefits in the development to the entire Bahamas. 4. Little or no success to the Bahamian people. 5. Etc, etc (each person can add to this).
ted4bz 10 years, 9 months ago
Part 1B There are some advantages as well as disadvantages and they are occurring simultaneously. Noticeably, in spite of the propaganda what remains most obvious is the disadvantages.
In every country a small group of individuals continue to prosper, presently most of them remain in advisory positions to the governing and opposition parties advising upon a tax method supported by the population including children, old-aged, ill and the dying. These people are advising their parties in their favor in attempt to protect their wealth from other methods of taxations.
As in all countries rather than sharing valuable information and opportunities with the masses, the masses are instead ignored while the politicians and governments shared the wealth with its privilege few. Yet, as always in every country the masses are called on to fix the problems caused by the politicians, their advisors, government officials and the privileged few. All Bahamians are equally fixed in the plans to share in the cost of economic burden regardless to status.
There is nothing we can do about this once it is demanded of us, but there is something we can do right now. Speak out now to avoid the possibility of: 1. Future burden placed upon us in the rush to push on us a inadequate policies. 2. Lack of oversight leading to the failures. 3. Continued abuse and reckless handling of public funds. 4. A lack of will to work together especially in times of crises (healthy financial status of our politicians, lobbing in favor or against associates, etc is a part of this ill-will). 5. Etc, etc (each person can add to this).
We are the masses but we do not command policies, the arm forces, the police and their weapons and other assets. We do not turn them upon ourselves because of the failure in political policies, rather it is the politicians that command these forces and their assets and turn them upon us because of their political failures.
ted4bz 10 years, 9 months ago
Part 1C We must all be willing to act right now. While the jury is in 'deliberation' every Bahamian man, woman and child must extend this call right now especially to:
(A). Their representatives, politicians, government officials and government departments: 1. No more reckless spending to further burden the public treasury and Bahamian people. 2. No more reckless projects that damages the jobs and Bahamian businesses such as road works project. 3. A call for more transparency and discipline in the management of public funds. 4. Wider sharing of informations and opportunities through the media and publication in a timely reasonable fashion. 5. Less red tape and bureaucratic procedures towards Bahamians. 6. More support and financial assistant to small business and startup of small business especially in farming, banking, casinos, hotels, tourism, technological and digital aspects of businesses. 7. More inclusion and wider participation of Bahamians in decision making and financial opportunities. 8. Less foreign workers and immigration work permits and more higher fees for work permits. 9. More educational programs for student scholarships and support. 10. Etc, etc (each person can add to this).
(B). The privilege class of wealthy individuals of this country to: 1. Please GIVE EXTRA willingly 2. Please GIVE MORE noticeably 3. Please GIVE BACK expeditiously
Please let us all help us save our country and save the less privileged Bahamian people especially those who are trying so very hard to rise above the hardship. Please help us help our country and our government from any such possibilities of failures. Please let us come together regardless of the political and economical divides and margins between us so that whatsoever call is made it succeeds due to our thoughtful and extended contributions.
This is my humble plea and I do so without any such political motivation but only as a concern citizen.
Ted Forbes, MHSc
john33xyz 10 years, 9 months ago
So does Section 23 of the Act mean that when the Act comes into force - if you "qualify" to register (by virtue of sales over $100,000 etc) that you need to raise all your prices by 15% and NOT charge VAT, then apply to register. After your registration is approved, then you need to mark your prices back down to the original amounts and start to charge VAT. The additional monies you charged while your application was being processed are now due to be paid as if you were registered.
You were not able to collect VAT while applying - so you cannot make your cash register say $x + $vat - but you needed to raise your prices enough so that you would have the money to pay the VAT retroactively as this section (23) requires.
?
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