The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie has suggested that the 15 per cent Value Added Tax (VAT) rate is not set in stone, but is dependant on the state of the Bahamas’ economy.

While the government is sticking to the July 1, 2014 implementation date, Mr Christie reignited calls for the business community to work with the government in an effort to come up with alternatives to the controversial VAT system.

“The government,” Mr Christie said, “always must continue to look at the economy and allow its decisions to be influenced by the status of the economy whenever it is making decisions like for example the introduction of a new tax. Clearly the government has under contemplation whatever is best for the country.

“Whilst the country is moving toward the introduction of VAT in July, the business community must take advantage of the opportunities that exist to speak to the government about the future of our country.

“They have been told by me publicly at the Chamber that where I sit I have reason to be optimistic about new levels of employment, about new levels of business opportunities (and) new money in circulation for the economy going into 2014. (If) that all goes well for our country and could in fact help to influence our final decisions on the taxation.”

His comments were in response to consultant to the Ministry of Finance James Smith’s assertion that the government should not implement a tax rate which is higher than 10 per cent but no less than 7.5 per cent.

Additionally, Mr Christie told reporters that he did not think that the timing of the constitutional referendum and the implementation of VAT would interfere with the success of either moves. The government has plans to hold the referendum in June.

“The constitutional referendum is only about one set of questions to do with gender equality. It has been done before in the Bahamas and it’s a question that is going to be ‘yes’ or ‘no’. That is going to be a matter for us to really make an easy decision. We are not going to confuse that with anything else and so the referendum is there.

“With respect to VAT,  we have to have a continuous discussion with the country (and) in short order we will be introducing a more elaborate sort of public relations programme to give people a greater understanding of what it is all about very shortly,” Mr Christie said.