The Tribune

FNM leader Dr Hubert Minnis warned that Value Added Tax will “seriously impair” an already weak, un-competitive and struggling Bahamian economy.

Declaring that its introduction threatens to diminish the quality of life of every Bahamian, Dr Minnis joined DNA leader Branville McCartney in accusing the Christie administration of trying to “stuff VAT down the throats of the Bahamian people” – whether they like it or not.

“The vast majority of Bahamians – the business community, foreign investors, rank and file FNM and PLP supporters, throughout our country – are confused and terrified by the PLP government’s sudden lurch towards the imposition of the new VAT taxation system,” Dr Minnis said.

Describing VAT as a “regressive” taxation system, Dr Minnis said the move has the “almost certain potential” to significantly and negatively increase the cost of living for everyone, particularly the poorest Bahamians and the long suffering and shrinking middle class.

“The Free National Movement is concerned that the PLP government – apart from being manifestly ill-prepared and uninformed about the details of the proposed new system – intends, notwithstanding such ignorance, to shove the VAT tax down the throats of the Bahamian people, whether the people agree or not.

“Such callous disregard for the Bahamian tradition and political necessity for consultation and for the informed consent of the governed is simply unacceptable.”

Dr Minnis called upon the government to immediately “come clean” and explain, precisely and clearly, why it is rushing towards VAT.

“The PLP should immediately disclose to the Bahamian people the details of any economic studies and analyses either by domestic or international advisors or agencies which have led the government to this proposed course of action,” he said.

“The government must also disclose to Bahamians whether they have explored ALL potential alternatives available in order to expand the tax revenue base, and disclose any such reports which have detailed alternative tax solutions other than a VAT system; stating why the government decided to propose VAT instead of the many alternative systems which could have been proposed.”

He also warned of the danger of perpetuating the government’s “reckless and un-disciplined tax, spend and waste” approach to governance.

“We are disturbed that while threatening to force a new and disruptive across-the-board tax on struggling Bahamians, this tax, spend and waste government has not at the same time announced any new measures designed to limit the growth of public spending, eliminate the waste of public funds on non-productive field trips abroad, pet projects of politicians, bloated and obscure contracts for friends, lovers and political cronies, and the political employment of a host of aged, retired and unproductive ‘consultants’, among other abuses of public finances by the PLP.

“Bahamians should be reminded that in just over a year the PLP government has already borrowed more than $1 billion, with nothing to show for it.”

The FNM leader also called on the government to release the VAT draft legislation immediately, saying their present approach of “governing by subterfuge” only adds to public confusion, uncertainty and fear.