By AVA TURNQUEST
Tribune Staff Reporter
aturnquest@tribunmedia.net
PRIME Minister Perry Christie yesterday said that he took the International Monetary Fund to task twice over pressure to implement Value Added Tax, pointing out the descent of other governments in the region.
Defending his government’s decision to implement the new tax system next year, Mr Christie said he rejected the IMF’s recommendation to introduce a new form of taxation during his previous term in 2002.
However, he was forced to reconsider it after returning to office last year amid a looming fiscal crisis.
“I told the International Monetary Fund,” said Mr Christie, “do you think Perry Gladstone Christie, who next year would have had 40 consecutive years in politics and public life, who the people of the constituency he represented never ever allowed him to lose, I asked the International Monetary Fund, do you think I’m going to allow these young men like Halkitis and Khaalis Rolle sitting in the meeting with me to lose an election because I don’t question you on what you’re telling me I should do?
“When other governments in the region fell? I said y’all think I stupid,” he said.
Mr Christie again called on the business community to work with the government in an effort to come up with alternatives to the controversial VAT system.
“Just as you see businessmen screaming and crying about what we should do and what impact it would be, and it’s their right to do that. Just as you hear me saying to them over and over don’t fight over it, let us sit and talk. We live in the same country, we want the same result.
“I’m open to hear your plan,” he added, “you know I need revenue. Yes I am prepared to collect all the taxes that are on the books. I’ve directed the Ministry of Finance to put special things in place for that. Now you tell me what else I must do, give me an option, let’s work this out together as a country because I want the economy to prosper.”
Less than eight months from the proposed July 2014 implementation date, both government and private sector stakeholders have admitted that the growing resistance to the proposed tax regime stemmed from “broad” lack of understanding and education.
Earlier this month, Bahamas Chamber of Commerce and Employers Confederation CEO Edison Sumner said talks with the government over alternative forms of taxation had been constructive. However, he maintained that the business community was against the government’s proposed implementation of the Value Added Tax system.
Co-chairman of the BCC’s tax coalition, Gowon Bowe said 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.
Yesterday, Mr Christie said: “When (IMF) told me when I was elected in 2002, you have to impose taxes, I said never, I’m not going to do it, but I’ve come into a country now where I have no choice and at the end of the day I’m going to make the right decision for the country.
“When I came in,” he said, “I was faced with a country that overspent on roads over $100 million, with international rating agencies rating us down, with a proposal for a tax that was on the books for 15 years, and with a country that was running like the titanic towards a major collision, with the need to do things for people and not the money to do it.”
Mr Christie added: “I have no interest in being distracted by politics about this commitment that I have made to the people of this country. I have not taken a day off since I was elected and I know I’m going to be subjected to all sorts of silly things that comes out of the mouth of politics.
“But I am working hard for one reason because the people of this country in overwhelming numbers of seats in parliament, 30 of 38, voted for me and my colleagues.”
Comments
proudloudandfnm 11 years ago
Dude if you are going to lead then please for the love of God LEAD!
You are PM, you can take the numbers from the crooks and start a national lottery. you can sell BEC. You can get rid of ZNS. You can get rid of B'air. You can clean up all the nonsense spending.
YOU HAVE TO LEAD!
johnq 11 years ago
I agree 100% that the PM has to lead and we must realize that problem #1 with our nation is proper leadership and the lack thereof. But selling off national assets is not the answer. What most don't know is that the modus operandi of international organizations like the IMF, World Bank, etc. in South America, The Caribbean, Africa...basically anywhere governments are in financial constraints, is to promote economic policies which cause further damage to their economies and then international corporations, which in action are represented by these international organizations from the most developed nations, sweep in and buy up these assets fire a large portion of its workers and rake in millions/billions in the process. What the Bahamas needs is intelligence, transparency, and a responsible long term plan to fix its economy. Based on the comments and actions of our current leaders, they don't have what it takes to do this.
concernedcitizen 11 years ago
We got here all by ourselves ,we have been borrowing since the seventies to provide jobs for an under educated workforce on the grossly over staffed public corporations .IT IS NO MYSTERY THAT A COUNTRY HAS TO KEEP BORROWING AND TAXING WHEN 1 IN 4 OF THE WORK FORCE WORK FOR GOVERNMENT ,,IT REALLY IS THAT SIMPLE ..
laallee 11 years ago
Christie ought to bet on with Oil and Gas exploration! The royalties gained from a decent find would clear the deficit and provide security for the country. Bahamas Petroleum Company should be encouraged to get moving and drill for oil.
banker 11 years ago
It's a poor bet. There is no oil in the Bahamas. If there was, the big boys would all be here -- Shell, Exxon, etc. Instead the Bahamas Petroleum Company trades on a junior, barely regulated exchange at pennies per share. The drilling off Cuba towards the Bahamas came up dry.
Thinker 11 years ago
Time we focus on education so local citizens can be more business savvy and innovative, doesn't anyone think? (Oh yes, not to mention better education would reduce crime, and then hopefully reduce government.)
The_Oracle 11 years ago
This entire rant is all about politics! The PLP will get voted out over this just as Ingraham did, twice. Trying to claim a renovated Restaurant just because you re-wrote the menu while leaving the kitchen filthy is what this approach best equates to. There is no way, on Gods Green earth this will function, or produce the required increase in revenue being lusted after! But inflation will strike, the economy will slow down, and maybe stop based upon the "Pie in the Sky" Government approach, and the fog around your consultants and Civil Servants who drank IMF Kool Aid will dissipate revealing the disaster you have wrought!
jlcandu 11 years ago
Well put!!!
Thinker 11 years ago
Sorry to troll here, but Christie won by default not by voter confidence. How about this...imagine, for just a moment, Mr. Christie, that you were a truly free individual and you said "No, we don't need your IMF credit card. We don't need WTO help trading. We don't need YOUR emergency funds because we believe moral people would assist in an emergency. We will allow VOLUNTARY TAX and remain FREE."
concernedcitizen 11 years ago
I would like to know how over spending on roads by 100 million gives a country a 5 billion dollar debt .We have been borrowing since the 70,s to afford our overstaffed corrupt public corporations .During PGC watch from 2002 to 2007 in the boom years the deficiet increased by 800 million .SOMEBODY PLEASE TELL THE TRUTH 1 IN 4 PEOPLE CAN NOT BE ON THE PUBLIC PAYROLL WITH OUT CONTINUED BORROWING AND TAXING ,,YES IT REALLY IS THAT SIMPLE ..
johnq 11 years ago
Excellent points about government spending, but your final point about government employment is off. While what you said is true about the number of people employed on the public payroll, this practice is legitimate. When considering that the Bahamas has no "real" welfare system in place or any other means to transfer wealth, the practice of government hiring above efficient levels must be kept in place. But to your points it must be managed more efficiently and be made free of corruption. But even more importantly political leaders themselves need to educated on these systems and why they exist. It is not difficult to understand why national corporations when privatized the first thing that happens is that the new private owners fire a considerable amount of people. Financially it is the obvious move but in the interest of public welfare and economic growth it is disastrous.
vlmarshall 11 years ago
Let me get this correct Hon. Prime Minister...You said NO to the IMF? Why did you say no to the IMF
Was it.."I told the International Monetary Fund,” said Mr Christie, “do you think Perry Gladstone Christie, who next year would have had 40 consecutive years in politics and public life, who the people of the constituency he represented never ever allowed him to lose, I asked the International Monetary Fund, do you think I’m going to allow these young men like Halkitis and Khaalis Rolle sitting in the meeting with me to lose an election because I don’t question you on what you’re telling me I should do?"
like you said. But then again you say it's not about politics right? Your'e a politician, it's always about politics.
concernedcitizen 11 years ago
i know ins,t that a trip ,its not about if its good or not for the country ,its about winning an election .and the scary part is thats not a Fruedian slip ..
realfreethinker 11 years ago
Is this man MAD. He must be on medication
proudloudandfnm 11 years ago
Actually Bahamas Petroleum should be told immediately that the Bahamas will explore for oil. If we find it they can put a bid in to manage it. That would fix our finances for decades....
Reality_Check 11 years ago
Roughly half of our National Debt is attributable to Government approved corruption of one kind or another plus gross mismanagement by our political leaders who sorely lack the skills necessary to do anything but spend the hard earned taxpayers money and then whine that more taxation is needed to keep Government employees/unions happy. Christie and Ingraham alike have run us up against the wall we now face where the only sensible solution is a very painful and economically disruptive downsizing of our Government sector over the next several years .........a sensible solution which government sponsored and funded organizations like the IMF, World Bank, IDB, etc. will never recommend because they are beholden to the security and economic interests of the US Government. The US Government of late (whether Republican or Democrat controlled) is hell bent on destroying the constitutional rights of its own citizenry and has demonstrated time and time again its disdain for the sovereignty of other nations through unprovoked wars, NSA spying, drone strikes, etc., etc. Why on earth would we want to take any advice of any nature from international "puppet" agencies of the US like the IMF, WTO, World Bank, IDB, etc.?
banker 11 years ago
Two reasons -- we owe $5 billion to the entities that they have direct influence over, so in effect they are the loan enforcers .. and two .. if we don't play ball they will shut us down -- no more cruise ships, Americans dropping money here, second homes will be worthless because there will be so many on the market. And this is the hoped-for scenario from China.
They would be glad to step in and give us money, and instead of the IMF and WTO and World Bank et al, we would be in the thrall of a communist state with no respect for personal freedom. Though I bet that they would clean up crime pretty fast. There would be people kneeling in Rawson Square waiting for the police to put a bullet into the back of their head, and then send the family the bill for the bullet.
The bottom line is we took the money, we can't pay it back, so we have to bend over.
Thinker 11 years ago
Yes, but the truth of the matter is that VAT is not the answer. Voluntary tax is. They know this but it requires an admittance that we are going to remain a free nation. Government nor the IMF nor outside nations like the US really wish that we remain free. They are doing everything in their powers to create more poverty and debt. Can you trust this government to get us out of debt? Not a chance. Increase taxes due to excess government spending? Guaranteed.
ThisIsOurs 11 years ago
Did they tell us to give 15million to UR 2.0 to blow in 2months? or give the housing minister $5000 for every low cost home built? Did they ask us to develop too rapidly (and unsustainably) on narco dollars in the 80's? Maybe they are simply leveraging against our own greed.
concernedcitizen 11 years ago
well put ,also if we want drafts from our central bank to have any worth at the large clearing banks so we can buy the many things we need that we don,t produce ,ie ,cars ,food ,building materials ,tv ,phones,,,everything !!!!!!!!!!!!!!!!!!
ThisIsOurs 11 years ago
"When I came in,” he said, “I was faced with a country that overspent on roads over $100 million, with international rating agencies rating us down, with a proposal for a tax that was on the books for 15 years, and with a country that was running like the titanic towards a major collision, with the need to do things for people and not the money to do it.”
Then why did you fly the entire cabinet to an out island as one of your first initiatives? Why was Gregory Moss allowed a "chauffeur"?
johnq 11 years ago
Honestly, is this what its come to now? Whining, grovelling and hopelessness? I never wanted it but my hands are tied! Is that suppose to make it OK? What are these guys expectations when they step into public office. Do they think that they'll drive around in chauffeured cars all day and have meetings where its all smiles and handshakes? Tough decisions...What are those? When it comes to every single socio-economic issue of some value and importance every single one of our politicians are shrugging with a clueless look on their faces or spouting rhetoric. Its time for something new people.
Thinker 11 years ago
"I told them..." Oh yeah? What did they say? "I need revenue" Christie says... WE, was the word you should have used. I cannot imagine voting for someone who used the word "I" instead of "We" when talking of needing revenue for government, or voting for someone who says God anointed him as PM (talk about using His name in vain, sheesh). Both comments show an ego-driven man with a superiority complex.
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