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ACCORDING TO ME: Enemy of our state

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Sharon Turner

By SHARON TURNER

WHEN governments identify a citizen who they allege has committed crimes against the nation, that person is referred to as an enemy of the state. Well for this column I invite you to broaden your scope of thought about that term of reference, because in a different sense here in The Bahamas, many of us are identifying the enemy of our state – our state of being, that is.

The government of The Bahamas, through a series of actions, is making itself an enemy of our state of being, because its actions are depriving us of ownership in our economy (BTC), weakening our border protection (Defence Force redeployment) and threatening our livelihood down a sloppy road of implementing Value Added Tax (VAT).

BTC and Cable

& Wireless

It can be difficult to wade through all the dung in the public domain about BTC. After all, we have a Prime Minister whose charade about “getting BTC back” rivals cirque du soleil, an Opposition that appears lost about the details of the privatisation its own government undertook, at least one media house’s principal who was part of the infamous shell company Blue Water and a remaining press corps that generally remains in the mode of presenting stories without balance and context.

That being said, when it comes to what’s best for Bahamians regarding the privatization of BTC and the very necessary full liberalisation of our telecommunications sector there are two key things we need to remember – the current government voted no to Bahamian ownership in BTC, and has hinted at its desire to keep sector liberalisation away from you, if it dreamily means getting control of the one cash cow whose milk cannot currently be pillaged.

Each day online, I interact either directly or indirectly with thousands of Bahamians, and what I find is that many Bahamians do not understand what ownership truly means. So let me break it down: if at the end of the day, money isn’t showing up in your bank account from a company’s profits – you have no ownership. If at the end of the day, you don’t get a personal report from that company on how your stake is performing financially – you have no ownership. The only way either of those two scenarios can happen for you, is if you own shares in that company.

Enter the enemy of our state. Do you know what one of the government’s first decisions on BTC was when they won? To cancel the previous government’s plans to offer shares of BTC to you and me. That’s right, their first vote on BTC was “no” to Bahamian ownership. You and I were supposed to have the chance to buy shares of the 49 per cent of BTC that the government owns. But the government said no, we aren’t giving the common man a single thing – this chunk of BTC is for us, not them.

The enemies of our state decided that not only were they going to strip Bahamians of the chance to truly own a piece of the BTC rock, they were going to distract the media with foolishness about Cable and Wireless so that the Bahamian people would forget to ask the government what it is doing with the 49 per cent of BTC that it still owns.

BTC is making much more money now than when it was 100 per cent government owned. Has the government told you what they have done with all those profits from their 49 per cent ownership in BTC? They tell you BTC is for you, yet you don’t see a dime of the profits and don’t know what’s happening with those profits.

Then, the Prime Minister – because he is not as daft as people like to think – floated the now heavily reported “possible extension of cellular exclusivity” line to the press as part of his pretension about the “fight for BTC”. I read the stories and laughed. Say what you want about the PM, but he knows how to get certain headlines going – sometimes.

Long story short, Mr. Christie at the very least suggested that he had no problem with you and me not being able to enjoy a fully liberalised sector any time soon – the kind of sector that allows for competition, that necessitates improvement of service for all customers if competing companies want to survive and be profitable, and that spurs job creation through the entry of new companies and upgrades by existing companies.

Our state of being here is better service, new telecommunications options, new domestic and foreign investment possibilities and Bahamian ownership in the golden calf (BTC). The government has aptly proven itself an enemy of that state.

Removing Defence Force Officers

When National Security Minister BJ Nottage recently said he wants to move as many as 150 Defence Force officers to the streets to fight crime, this wasn’t a new move by him.

Last year, scores of Defence Force officers were removed from post to suddenly become police officers.

How is The Bahamas supposed to remain viable in fighting drug, human and gun smuggling, poaching and illegal migration at our borders if so many Defence Force officers are removed from their post? Who stands to gain if our borders have less protection – the country and law-abiding Bahamians, or foreigners and Bahamians involved in the illegal activities aforementioned?

And why does the Minister feel the need to redeploy Defence Force officers when his government last year – in the midst of rising violent crime - removed hundreds of police officers from the streets fighting crime to be babysitters in schools, cream and bread toters in Urban Renewal and to form record legions of bodyguards for government Ministers?

If the government was not acting as an enemy of our state of being in the crime fight, it would never have taken all those police officers from that fight. Just as easily as it did so, it can and should put those trained police officers right back where they belong – on the streets working to make this country safer from violent crime.

But speaking of safer, I don’t know how much good more Defence or Police Force officers might do after Deputy Prime Minister “Brave” Davis announced to the country and the world that no one in The Bahamas is safe from crime.

What a tragic announcement for Bahamians and The Bahamas whose number one industry is tourism and whose largest economic driver is foreign direct investment. If none of us is safe, according to the Minister, then no foreigner in our country is safe either. So why should they want to visit here and do business here?

Yes, the Minister of Urban Renewal – the celebrated antidote for crime in Nassau – became so shaken up by the regrettable armed-robbery shooting of his bodyguard that he actually allowed himself to betray himself and his government’s propaganda about crime.

What’s the matter, Minister Davis? Now you’re starting to feel like the rest of us who don’t carry legal firearms in addition to having legions of armed police bodyguards as you and your other Cabinet colleagues do? Now for you crime isn’t “down”, it’s so up that all of us need to hide in our homes and pray for the rapture because in your words, “none of us are safe”?

It’s always ironic when life forces the truth out of someone in spite of himself. If the government did not insist on being enemies of our state of mind by lying to us about the state of violent crime, Mr Davis’ politically and socially amazing comment may not have been so amazing.

Put our trained police back on the streets, let our Defence Force officers defend our borders and get some crisis counseling for Mr Davis who has clearly been shaken out of himself by the kind of crime that isn’t “down” anywhere in Nassau – armed robberies.

Value Added Tax

If Value Added Tax is not implemented properly in The Bahamas, it will probably be the biggest single threat to our livelihood that this administration would have wrought upon us.

To simplify, Value Added Tax (VAT) is similar to sales tax, in that you and I would pay the regular price for goods and services plus an added tax. Businesses would also pay extra via that tax to operate.

The government claims VAT will bring in so much money that they will be able to balance the budget in two years – even though it says that VAT, after reducing customs duty, won’t result in an overall rise in taxes/cost of living. So then how will VAT give you more money with which to balance the budget?

Let’s look at two aspects of revenue collection under this administration thus far. The government says it had a total revenue shortfall this current fiscal year of $170 million. It also says it projects about $102 million less – not more – in general import duties and excise tax collection in its fiscal year beginning July 1. Now. The economy is growing – so why the large shortfall for 2012/2013, and why is the government saying it expects customs duties and tax for 2013/2014 to be about $102 million less than its projected intake for its previous budget?

I don’t recall anyone questioning the government on why its projected shortfall on customs duties is so high, but the point it drives home is this – if the government is not collecting projected customs duties in a system of taxation that has existed for decades and where it is the sole collector, how does it expect for us to believe it will be able to collect VAT, where private companies will become the tax collectors at point of sale and where the system is completely brand new to us?

As a point of successful reference, Barbados took several years from the point of initial talks to legislation to implement VAT. This time period included rigorous public education so the country and its investors would understand what VAT would mean for business and cost of living.

Compare that to our government, that has not even tabled its draft VAT legislation yet for consultation with the public. It claims it will do so before Parliament’s summer recess, but claims that even when it does table the draft it will not include the regulations that will govern its implementation. Minister Michael Halkitis told reporters the regulations would come “later” – but the regulations are precisely what businesses and the public need to see in order to know exactly what is going to happen.

Yet the government claims it will implement VAT next year. No infrastructure in place for the collection of VAT. No public education and informed consultation on an actual Bill. No timeline for regulations governing VAT’s implementation and how it will specifically affect customs duties. But in less than 12 months, The Bahamas is supposed to be fully ready to dive head first into a new system of national taxation.

Only an enemy of our state of livelihood would attempt to rush and haphazardly dive into a brand new system of taxation, even as it is failing to collect taxes via frameworks that have existed for decades – just as such an enemy is blocking paths to Bahamian investment and ownership, risking the weakening of our borders and announcing to the world that The Bahamas which is supposed to be “better”, is not safe for mankind.

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Comments

nationbuilder 11 years, 5 months ago

wow. this is awesome and so true, especially the part about VAT that people are not paying attention to right now but its so important

concernedcitizen 11 years, 5 months ago

you now certain firms won,t be about dat ,and won,t pay no vat w/ the blessin from the people that should be collecting our money ,,,just like NIB from 2002 to 2007 when cool PC claimed the economy was roarin but certain folk couldn,t find ten cent for their employees NIB ,,

Honestman 11 years, 5 months ago

Bahamas is not ready for the implementation of VAT. The people are not ready. Let's face it, if thousands are not paying their property taxes (and that is a straight forward tax) why does government think the people are ready to be honest about VAT returns?

nationbuilder 11 years, 5 months ago

no country has ever started VAT or a new tax in less than a year. what r dese guys tryin to do to us? you could see the government doesn't even know what its doing, and just like @honestman said, the other taxes we supposed to pay ain't being collected now as it is

concernedcitizen 11 years, 5 months ago

they already borrowed close to a billion ,got to promise the rating agencies something ,,

nationbuilder 11 years, 5 months ago

yeh das tru, but those agencies aren't stupid, they are already saying the numbers and projections aint gelling. they may be able to fool some bahamians but they cant fool those guys

superUser 11 years, 5 months ago

@nationdestroyer, AKA FNM cronie - Please show us evidence where you thoroughly researched every single country in the world that has implemented VAT.

MartGM 11 years, 5 months ago

Most countries in the developing world today follow the example of Singapore. Singapore discussed implementing a VAT for nearly 20 years before finally implementing it in 1994. There implementation was nearly seamless as they gave ample time to educating their citizens among other things.

This government has yet to begin implementing such sessions and they hope to have this up within a year. No single government has successfully implemented VAT within a year. The accounting work alone takes time. How many tax accountants does this country have...

TalRussell 11 years, 5 months ago

Good lord almighty. The Comrade Sister "Shar-run" does got's both her ears cocked-back this lovely Saturday day. She tis on the attack like never before. Wonder how much of Hubert's penmanship lies within her bizarre tall tales about PM Christie?

superUser 11 years, 5 months ago

FNM minions were the "Enemy of state" for 5 whole years. Now, they are just sad pathetic individuals.

concernedcitizen 11 years, 5 months ago

mr/mrs i,ve resided in ten countries ,i don,t use a cell phone ,and i built my own computer ,,,,,are you back to regale us w/ body function insults , generalized foreigner bashing , and symbolic chest pumping as you shout i,m a Bahamian ..

TalRussell 11 years, 5 months ago

Comrade you failed to mention that the VAT was first given consideration by Singapore way back in 1966 around he time they became a republic. Their VAT tax was to replace their corporate profit tax and payroll tax. Instead they moved to a tax on luxury items. I just don't see any similarity to what the PM Christie administration is attempting with the way they are RUSHING through, in less than 12 months, their reckless concept of a VAT. Singapore's VAT tax was NEVER to be a tax FURTHER BURDEN the poor?

MartGM 11 years, 5 months ago

I wasn't comparing it to the Bahamas in any way. I was merely disputing the idea that any country can implement a VAT in less than a year.

However, our government could potentially learn from Singapore's gaming tax especially since we're looking to beef up the gaming industry in this country. The top three revenue earners for the government of Singapore are the gaming tax, the VAT and the Income tax.

TalRussell 11 years, 5 months ago

Your points are well presented, except I must differ from you on this one. YEAH follow a country like Singapore which can land your backside in prison, if you as a citizen or visitor dare to drop a piece of paper on a sidewalk. God forbid, if you spit. That could amount to a capital offense.

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