THE government has collected $110m in value added tax payments during the first three months of the year, Prime Minister Perry Christie told the House of Assembly yesterday.
However, it is unclear how much the government has taken in from the proceeds of the new tax to date.
He added that VAT implementation has met the government’s expectations.
“To date, on the registration, filing and collections fronts, VAT implementation has proceeded well,” he said during his 2015-2016 Budget communication. “For instance, we have exceeded our target for VAT registrants by some 1,700. As of April 29, which includes the early results of the first quarterly filing period, we experienced close to on-time filing performance of over 90 per cent among the larger, monthly filers. For quarterly filers, for whom this was the first filing period, just over 80 per cent of the mandatory registrants filed on time. Taken together the government has collected an estimated $110m in VAT over the first three months of this year.”
“On the basis of experience to date, the Ministry of Finance projects that we will achieve the projected net revenue improvement from VAT collections in the current fiscal year, which had been set at $150m at the time of last year’s budget communication, after provisions for the more than $60m in reductions we provided in customs duties and hotel occupancy tax reductions.”
Mr Christie said while he is encouraged by these results, he stressed that the country must achieve further improvements in respect of both filing performance and on-time payments.
“The ultimate sustained success of VAT is highly dependent on dedicated and proactive compliance efforts,” he said. “I thus reiterate my message urging businesses that are subject to VAT to be fully mindful and respectful of their obligations under the law. Full compliance is not only their civic duty but also their legal obligation.”
VAT was introduced on January 1 at a rate of 7.5 per cent.
Comments
sotiredoftal 8 years, 10 months ago
I wonder how much of this goes to him and his cronies....
ThisIsOurs 8 years, 10 months ago
I know right...I'm really perplexed as to why he seems to always appoint people with prior charges of money mismanagement at minimum! outright embezzlement at maximum to positions overseeing HUGE sums of money. Bradley Roberts once compared his term to that of Barack Obama's. what a joke that is. One hint of scandal in Obama's administration and you're GONE like yesterday. Whose interest is being served by appointing so many embezzlers???
asiseeit 8 years, 10 months ago
He is saying that business needs to tighten up in paying VAT, what a dolt, business is collecting and paying VAT because government is an abject failure at collecting taxes. If the private sector go together and said we will no longer do your job, what then fool. On another note, how much of that 110 million went towards are debt? Also speaking of the LAW, have you obeyed the law and made public your financial declaration? Has it been gazetted as the LAW stipulates? I have yet to see one single declaration in the papers, criminals!
TalRussell 8 years, 10 months ago
Da Comrade PM even after 3 plus years into his administration is still 'Out-sizing Expectations." it shouldn't be too damn late to prevent false rejoicing by the very same mostly poor taxpayers who all have less disposable monies to spend, after they done through paying the PM's VAT, to ask Her Majesty Queen of England, to sign some kind Royal Order. making it mandatory that the PM will no longer be able make monetary statements, unless they be likes first pre notarized as to truth? Verify and verify!
Reader 8 years, 10 months ago
What was the total cost to the Bahamian taxpayer to implement VAT?
lionfish 8 years, 10 months ago
Oh- well do not get used to it. Don't forget that many businesses had inventory purchased before VAT implementation ( meaning no VAT input credit due). Most businesses purchased for the 2014 holiday season prior to VAT so they then had an inventory load to sell with no VAT credit due (all VAT to gov). All subsequent filings will not have that same GOV surplus. So, unless there is an increase in public spending (not likely) Gov. VAT revenue will go down. Unless the economy grows VAT revenue will decrease.
Well_mudda_take_sic 8 years, 10 months ago
Add to your correct observation, the windfall government is currently collecting by wrongfully assessing VAT on other high taxes that already exist like the sin taxes on wines and spirits, cigarettes, etc. not to mention all the other instances of high double taxation that the WTO would never endorse or support under its global trade objectives. Watch how quickly our 7.5% VAT becomes 15%!
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