The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) Coalition for Responsible Taxation yesterday said it now represented 800 businesses that employed over 60,000 persons, unifying the business community more than at any other time in Bahamian history.

The Coalition, in a statement, said it was its “fervent hope that the Government will take note of the magnitude of this grouping” and embrace it as a full partner in the planned fiscal/tax reform process.

“The Coalition understands and respects the need for the urgent implementation of fiscal reform measures including, among other initiatives, the reform of the current system of taxation in the Bahamas,” the Coalition said.

“The current financial position and performance of public finances necessitate wide-ranging reforms. Our current state of affairs, represented by deficit spending and spiralling public debt, is a result of recent recessions, the demands of the citizenry and the tacit acceptance of poor fiscal accountability even in times of plenty.”

The Coalition called for the Government, private sector and individuals to work together on strategies that would grow the economy, increase tax revenues and curtail public spending while managing the debt.

There are some signs that the Government may be more open to including the Coalition, and private sector, in its fiscal reform and tax plans.

In a joint statement put out by the Ministry of Finance and the Coalition, the former said it viewed the latter “as an additional and major conduit for consultation with the private sector”.

The statement said the two sides had agreed on three points following their November 6 meeting, including a consensus that “the state of the fiscal affairs of the Bahamas was at a critical stage and requires urgent attention and action”.

The two also agreed that “there is a need for tax reform as part of the solution to the fiscal challenges of the country, coupled with sustainable action in the area of the expenditure control by the Government”.

And, finally, and perhaps most crucially, the two agreed that “the Government’s plan for fiscal reform, including new tax initiatives, should be the subject of broad-based consultation.

“Such a plan should involve the greatest collaboration possible among the Government, the private sector and cross-section of constituents, while protecting the goal of timely development and implementation.”