WITH the draft legislation for Value Added Tax finally released to the public with only a month before it is set to be debated in Parliament, DNA leader Branville McCartney is urging the government to consider alternatives.
He said that as the public “stares down the barrel” of VAT implementation, the issue remains clouded in confusion, in part because of inconsistent statements by Prime Minister Perry Christie.
One moment, the Prime Minister speaks of the inevitability of VAT and the next seems to plead for an alternative from the business community, Mr McCartney said.
“More recently the Prime Minister blames the financial mess left behind by the FNM for forcing his hand to introduce a tax that he said he took the International Monetary Fund (IMF) to task twice over pressure to implement.
“The Prime Minister’s statements in reaction to public statements of former PLP Cabinet Minister George Smith and more recently former Central Bank Governor James Smith have only served to cement the fact that our country has no direction,” the DNA leader said.
A week after James Smith, now chairman of CFAL and a consultant with the Ministry of Finance, said that he is a proponent of VAT but believes a lower rate would satisfy international credit ratings agencies and be more palatable to the private sector, the Prime Minister said he must take Mr Smith’s advice into consideration.
Mr McCartney said it is becoming clear that the Prime Minister is becoming concerned about his party’s political future over this issue.
“A government that truly cared about Bahamians would have first come to the Bahamian business community and sought a solution before trying to ram a tax down the throats of Bahamians despite knowing the inflation and economic regress it has caused in many other Caribbean nations,” he said.
The Democratic National Alliance has itself proposed several ways to increase revenue and ultimately reduce debt without resorting to VAT.
Mr McCartney said: “The DNA believes firstly, that we can achieve efficient government operation, consisting of proper collection of existing taxes, constraining the growth of government spending and limiting government borrowing to a percentage of revenue, introduction of a national procurement agency, privatisation of Water and Sewage, Bahamas Electrical Corporation, Bahamasair, implement of a proper Freedom of Information Act, enforcement of the Public Disclosures Act, introduction of a Whistle Blowers Act and elimination of cronyism projects and perks.
“The DNA believes secondly, that we have tax alternatives, consisting of implementation of a goods and service tax between 5 per cent and 7 per cent levied at point of sale, reduction of duties to 10 per cent, reduction of government subsidies to tourism related businesses by 50 per cent, land tax above certain nonperforming acreage and withholding tax applied to education.
“The DNA believes thirdly, that we can grow the economy by making the business community successful, through a reduction in cost of electricity (14c per KWH in power generation 3c per KWH in distribution), reduction in the prime rate by 50 per cent, reduction in the cost of capital through structured elimination of exchange controls, diversification of the Bahamian economy, incentives to the small business sector, empowering working Bahamians through increasing the minimum wage to $7 per hour and making available ownership of Crown land through a National Land Bureau.
“We believe that through consultation with the public and private sector, together with measured and decisive leadership, we can not only turn the economy around and reduce the debt but create an economy that will bring prosperity to more Bahamians. After all, isn’t that what good governance is about – making life better for Bahamians?”
Comments
TalRussell 10 years, 11 months ago
Comrade Bran's original leadership warranty expired following his DNA party's failure to win much support from the electorate during the 2012 General Elections. His continuation to think he can become the PM by writing press releases from the comfort of his Montague office is not going to extend his leadership warranty to 2017. This man has not developed one battle scar since the day Hubert graciously summoned him to the PM's office to inform him that he would get him elected to Bamboo Town. Seems like Bran's objective is to outdo Minnis when it comes to the quantity of press releases rattled off over a 30 day period. Both men lack the characteristics and leadership skills to unseat a sitting PM, much less a returning PM from Coopers Town.
Guy 10 years, 11 months ago
What nonsense. The way this govt is going, I can probably unseat the sitting Prime Minister. Admit it Tal and stop the charade! Leadership is lacking badly in this town, and the PM has obviously bitten off more than he can chew. Even PLPs are waiting for the opportunity to send PGC running off into the sunset.
ThisIsOurs 10 years, 11 months ago
Guy for Prime Minister!
proudloudandfnm 10 years, 11 months ago
WE CAN STOP VAT!! GET TO YOUR MP OFFICE AND TELL HIM OR HER THAT IF THEY VOTE IN FAVOR OF VAT THEN THEY BETTER START LOOKING FOR A JOB BECAUSE YOU WILL NO LONGER VOTE FOR THEM.
EASY AS THAT...
realfreethinker 10 years, 11 months ago
My mp has already indicated that he is voting against vat and he is a PLP
ohdrap4 10 years, 11 months ago
I hope you put that on camera, to post on youtube when he flip flops in the house of assembly
ThisIsOurs 10 years, 11 months ago
Don't trust him
ohdrap4 10 years, 11 months ago
no you cant stop them, they will increase your electricity bill by 15%, vat is highway robbery
Mouse 10 years, 11 months ago
Russell it's people like you that holds a country back. People like you sicken me. All ya'll ever do is bash people. The man is discussing alternative methods to help The Bah and the Bahamian people and you here criticizing. He has great points. Why can't he become Prime Minister of the country ? We had one real PM and that's Sir Lynden Pindling. Those other two destroyed our country with their secrete partnership. You talk about Mr. McCarney losing the election. How could he win with 2 snakes conspiring against him ? 2 people riding around and choosing how to cut boundaries ?? You know nothing about politics. Bahamian people are stuck in their ways. All they know is PLP and FNM, clearly these 2 parties are not getting it done. All they do is take under the table deals and sell out Bahamians. You are ignorant. Mr Hubert Ingraham is the reason property is so expensive in the Bahamas. Read the International Persons Landholding Act his party introduced to Parliament in 1993 then inforced in 1994. Mr. Ingraham is also an informant for the U.S. gov. in developed countries around the world that would be considered treason. Punishable by DEATH. (Confidential Informant #1622). Do your research before you open your mouth. Mr. Christie is not even worth mentioning smh just plain lousy.
banker 10 years, 11 months ago
I agree with you again.
banker 10 years, 11 months ago
Is that you Gorman?
TalRussell 10 years, 11 months ago
Comrade Mousse hate break the news to you but Bahamaland is but days from 2014. Some old arguments need to be retired.
The_Oracle 10 years, 11 months ago
While a serious assessment and complete understanding of the Why and how of VAT needs to be put forth to the People by the Government, Including the truth, None including Mr. McCartney has a program without major flaws. Example, Increasing minimum Wage is not going to help any Bahamian, as the job market will shrink because of that one move. Utility rates are bleeding the country, and fuel costs will only go up. A regulatory regime that allows private capital to mobilize as it sees fit, will create diversity into Biofuels, Solar, wind, Ocean and thermal generation. Private sector encouragement, and private sector risk, not Government lip service can do that job, at no Government risk. Notice how all there Best commission and environmental study requirements have bound all these potential projects up? They should be the environmental watch dog and monitor, not the say so say no that they have become. Yes, the PLP is forced to implement VAT, they got caught holding the bag, The engineer of it is holed up in Coopers Town however. He rammed the throttles full speed ahead, but got off the train!
jacko 10 years, 11 months ago
Charge VAT on alcohol and cigarets pls !oh by the charge VAT on all criminals who found guilty ,and those given bail before they pay their lawyer .
SurDavid 10 years, 11 months ago
Under the VAT, all taxes paid by business will be recouped from the government by that business and passed on to the consumer.
The consumer pays this tax on all goods and services with the government giving selective exemptions such as feminine products and baby clothes to appease the angry masses.
And don't forget...the 15% tax rate is just the starting point and can be raised at any time by any government for any reason. A fairer rate would be set at 5% and require a referendum on any proposed increase.
So tell me...how long do you think it will remain at 15%?
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