By AVA TURNQUEST
Tribune Staff Reporter
aturnquest@tribunemedia.net
THE decision to exempt games of chance, gambling and lotteries from Value-Added Tax has sparked calls for the government to clarify its position on web shop gaming.
A revised list of exemptions was listed in the October draft legislation obtained by Tribune Business - more recent than the previous leaked version of the Bill - which reveals that electricity will now be VAT exempt for both residential and business consumers.
Less than eight months from the proposed July 2014 implementation date, both government and private sector stakeholders yesterday admitted that the growing resistance to the proposed tax regime stemmed from “broad” lack of understanding and education.
Ishmael Lightbourne, a VAT consultant within the Ministry of Finance, hit out at efforts to “destabilise” the implementation process by the business community, namely Super Value president Rupert Roberts.
Speaking at a town meeting last night, Mr Lightbourne acknowledged that resistance was “emerging from every sector”, adding that most Bahamians had not come to terms with the country’s economic circumstances.
Noting that the government was behind in public education on tax reform, he charged that the process had been hijacked by an uninformed, ignorant VAT debate.
Co-Chairman of the Bahamas Chamber of Commerce’s tax coalition, Gowon Bowe countered that resulting “hysteria” over the proposed tax system was due to the government’s failure to bring clarity on concerns over potential impact to economic recovery and growth.
Last night, Mr Bowe said: “I know that the IDB up to this point in time is still conducting (assessments). We have been assured that once it’s completed, it will be shared as it should be shared with the wider public. One of the things we want clarity on is in terms of saying that the studies that may have been completed before now that helped make this determination, share those with us and the community.
He said: “Rather than us arguing over something that may be very easily explained by the studies that may have been performed, if there have not been specific studies to the Bahamas then let’s give consideration to making sure that the appropriate studies have been done.”
“It is imperative,” said Mr Bowe, “that they start to release information. You can only hold citizens accountable if they haven’t read it and it’s available, if it’s not available, it’s very difficult to say well the reaction or behaviours are uninformed or hysterical because you haven’t given them enough to quell that hysteria or to allow them to make reasoned decisions or to make reasoned debate, and so right now government will admit that they are far behind the eight ball in terms of what has been released.”
Mr Bowe also called on the government to ensure there was equal distribution of who “bears the pain” of VAT, adding that unregulated businesses should not be allowed to operate.
He said: “That’s not a debate for us to consider, it’s one for the government to make sure there is equitable distribution. So when we talk about tax reform, one of the key things is now we want equal distribution of who bears the pain, we know that there will be pain but it has to be done equally. You can’t have a sector of a society or economy operating where they are not contributing. It has to be made to understand that one way or the other, (any business) has to either be a contributor or cease in the operations.”
Said Mr Bowe: “You cannot say to the citizens and wider population ‘feel pain’ when there isn’t a clear equal pain being felt by those within the sector, and that doesn’t just speak to the executives, that speaks to the entire public sector. There has to be greater efficiency, greater productivity, when we look at how we spend our monies it has to be done in a wiser manner and when we have make sure we are paying off debt. We have to treat it as a business.”
He added: “I know there is great intrigue around the legislation, concerning the gaming houses in particular and some of the other elements that may be exempted, and I think the primary focus really needs to be on how do we get to that answer. The legislation is a little bit of putting the cart before the horse. From the perspective of saying let us understand how we got (to VAT) so we can have greater consensus and buy-in so when we start to drill in to the legislation, we can say ‘okay are these the right exemptions?’”
A link between organised crime and webshop operations in the Bahamas became a touchy subject in the House of Assembly this week when Free National Movement Deputy Leader Loretta Butler-Turner called into question an admission by Tall Pines MP Leslie Miller that he bought numbers.
Gaming Board Chairman and Fort Charlotte MP Dr Andre Rollins, supported the points raised by the Tall Pines MP concerning Mrs Butler-Turner’s awareness of the numbers industry as she was a cabinet minister prior to the change in government.
Adding that his next comments were not to be taken as an insult, he noted that the politicians on both sides of the political divide have said one thing while in opposition and the “exact opposite” when in government.
Other exempt services include religious services, diplomatic and embassy services.
According to the Ministry of Finance’s notes, gaming activities were exempted because the sector is already taxed under the Lotteries and Gaming Act, and the Casino Act.
See Tribune Business for more on the October draft legislation.
Comments
proudloudandfnm 10 years, 12 months ago
If we can just avoid having a PLP government for say the next 50 years we won't need VAT.
Cornel 10 years, 12 months ago
So, how would you charge VAT on gambling in any case. On the amount you won less your buy in?
ThisIsOurs 10 years, 12 months ago
How can any Bahamian "come to terms with the country's economic position" when they see two prominent ministers jet setting around the world with their harem? The top continues to signal that everything is just peachy.
This is the most confused govt ever. Webshops are exempt because gaming activities fall under the lotteries and gaming act. But I thought their argument a minute ago was that these business were legal because they were just providing internet services as allowed by their business licence. If they are now admitting that they are "gaming" the commissioner should shut them down now. He operates independent of the executive...doesn't he?
John 10 years, 12 months ago
THis RIGHT HERE tells us whose calling the shots in this country...I have been saying for years, decades even that Bahamians should NOT be subsidizing the tourism industry in the Bahamas and they continue to force the tax burden on us. Why should Bahamians be taxed so someone from Canada, Nebraska, China or Russia could come and vacation in the Bahamas? Why should our cost of living increase so that some stranger could come lay up in the sun or visit the digs on Paradise Island. Think about it then look how dumb it sounds. Tourism (and gambling) is a money making industry. A lucrative one, for the most part. If a new dock is needed for tourist or a new airport or new roads or any other thing new for tourists, Bahamians should benefit from these infrastructures being put in place and not have to pay for them! We have already given up our access to many beaches and ownership of beach front property that most cannot now afford and are enduring the higher cost of living, just to make tourism successful in this country. Government has this thing all wrong, backwards even. FIVE MILLION tourists visiting the Bahamas each year should generate enough tax revenue to pay at least two thirds of the national budget. But we allow the foreign companies to dupe us into not paying their fair share of taxes. We want to pay our fair share, not our own plus theirs. In fact government is subsidizing their businesses, at least many of them at the expense of the Bahamian people. Yet we cry about the few million that is spent on Bahamasair to keep the Bahamas connected and allow the easy and convenient movement of Bahamians at a reasonable fare. Either they pay tax (VAT) on gambling (gambling is a vice so charge the damn sin tax) or no one pays!
John 10 years, 12 months ago
We allowed the gaming boys to slip away tax free in the first instance when the church came in the picture and skewed the whole intention of the gaming referendum. Now there are hundreds of web shops operating in this country turning over millions of dollars and everyone seems clueless as to what to do about them. Since most of their money is not being re-circulated and none of it is being taxed they are in effect draining this country of its cash, just like the "cash for gold' gangsters ripped the country of millions of dollars in gold and precious jewels. GOD reigns on the just as well as the unjust! And so must government. Tax the web shops or chase them further underground by attempting to shut them down. 'Tis a government decision!
:::If the church had the right message on gambling, they would be telling the government to tax the gamers (using the polite word here) more not to "vote NO" !
padeco 10 years, 12 months ago
It seems to me that some of these so called church leaders are intellectual retarded.
pat242 10 years, 12 months ago
WTF. why the religious business will not be taxed. That is BullS**t. The monies that are collected has changed over the years. seem like its is not GODS MONEY, but the paster money. they live in mansions, send their children to the best schools while the average Bahamian citizen lives in average or poverty conditions. I have been to a church where the paster told the ushers to close the door and hustle the members for money. To make things worse the Paster used God as a forefront to scare the members in giving. As i watch in disbelief a woman was crying as she walked to the alter and gave her mortgage money. and guess what the paster say. do not worry God will deal with your problems. Thats not fair. I blame the members for being gullible. I did not give a SHIT Long story short TAX them they can afford it cause the average citizen cannot. THANK YOU
BahamasGamingAssociation 10 years, 4 months ago
https://www.facebook.com/pages/Bahamas-…
WHICH ON OF THE BELOW REIGNS SUPREME IN THE BAHAMAS?
The Bahamas Lottery and Gaming Act Chapter 387 Section 50 Persons prohibited from Gaming
Or
The Constitution of the Commonwealth of the Bahamas Chapter III – Protection of Fundamental Rights and Freedom of the Individual. Section 26 Protection from Discrimination on grounds of Race, Place of Origin etc.
The Bahamas Gaming Association stands by the Ideology that all human beings who are 18 years or older should be treated equally in all sectors of the Bahamian Economy which is enshrined in the Constitution of the Commonwealth of the Bahamas.
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