The Tribune

By Rev. Canon S. Sebastian Campbell

The church is the largest constituency within the Bahamas, as such she must give informed leadership. The hot button topic is the overhauling of our tax system, a radical move indeed but ever so necessary to the ongoing development of our country. Currently, the voice of the church is silent; how much longer can she remain tight-lipped. Again the church is giving currency to the claim that she only can speak when it comes to a referendum on gambling and cares little about real important issues affecting the people. The perception is there, and it is being borne out as the truth. By now the church should have demanded to be first among students in availing herself to the facts about the proposals in the new tax structure. A new tax structure lurks and it is inevitable to our growth and development. The church ought to be the leading teacher in this new development. The church cannot be chief critic void of any actions within the arena of our financial life.

This bullet we have to bite, there is no option. Our financial system must be overhauled, as, is it is totally inadequate and not real to the times. Naturally, our demands as a people continue to escalate. We expect more from our government. Our roads, in spite of the New Providence Roads Improvement Project can wreck vehicles if you do not drive with ever increasing due care and attention due to the craters in them. We have an even more devastating situation on our family of Islands. National Health Insurance is coming. “Oh let it come, let it come and never too soon.” How is it to be adequately funded? Indeed, it is quite miraculous we have survived so long without radically overhauling our tax structure.

Yes, we must intentionally go after improving our collection of taxes. We must confess our failure to successfully achieve maximum results in tax collection. VAT, mind you, is said not to be a progressive form of taxation, I am no tax expert, but I’ve heard the cry from friends in the region that have it. Income tax is said to be more progressive and will cause those who have more to carry a greater portion of the “burden” as opposed to a VAT, where all men will be equal in contribution. Bahamians ought also beware that some countries in our region have both VAT and income tax. Yet remember too, the Bahamas is an archipelago. We have to repeat maybe some sixty plus times that which regional countries might only have to do once. We must plan, construct and maintain a multiplicity of roads, airports, schools, docks etc. So we can more easily justify giving birth to the twin taxation system of VAT and Income Tax. My recent visit to Barbados I experienced VAT at 17 percent along with income tax.

OK, let’s go the way of VAT, can we attack and bring down that 15 percent proposal for us. Here might be the punch line for national debate. I am sure Bahamians; having realistically agreeing that we must radically overhaul our tax system might be able to give some meaningful help. Here are my ideas to lower the proposed 15 percent:

1. Go aggressively in effectively collecting taxes in our present regime. Millions of dollars, it is alleged are outstanding now. Is there a creative plan to go for it? Ho can we curtail it from happening again and again?

2. Be real with the “Numbers-Business”. It is here to stay. Effectively tax the number houses. Research has already shown that this is an oasis of wealth sitting in our midst. Governments sometimes must make hard and unpopular decisions for the good of the country; go for it. It is common knowledge that many involved in the numbers business voted against the referendum in January. By so doing they guaranteed greater gains for themselves, no sharing of profit to the wider community. In January, please be honest and admit, we had an opinion poll, loaded with flaws. I urge the government to do the most appropriate thing, lead. The resource is here; let’s tax it for the common good. As parliament goes into the debate of gaming now is the time to level the playing field. Do not give away rights to foreigners that Bahamians don’t have in their own country.

This is a hot-button topic, it is not prudent to do it near an election, therefore now is the time. We have no luxury in waiting for this one. By 2017 Bahamians would have experienced the results and government would have had time to tweak and show the public the benefit of the new regime. The lowering of custom duties on some items will make the whole thing more palatable.

I call my colleagues within the church to step forward. It is our duty to prepare our congregations and the nation as a whole for this reality. This is where leadership is warranted now in our development. It is not the duty of only the government and politicians in educating our people, and to give leadership. The church must assist in leading the way and not get in the way of this necessary, progressive, albeit radical move. It might be a good gesture for government to launch its plan education programme with the church.

It’s not to tax or not to tax it is to tax, but how?