PROGRESSIVE Liberal Party chairman Bradley Roberts hit out at former Central Bank governor Sir William Allen for his comments on the government’s plan to introduce Value Added Tax next year.
Calling the plan a recipe for recession last week, the veteran finance expert said the PLP is moving too fast as the economy is still too weak for the moves necessary to offset the “pain” VAT would cause.
But Mr Roberts yesterday countered that a man of Sir William’s experience – he has also been State Minister for Finance and consultant to the Ministry of Finance – should know better than to mislead the public.
And, the PLP chairman accused Sir William of “seeking to create confusion in the public domain and whipping up public hysteria on a national issue as critically important as VAT - for purely political purposes”.
He said: “The government was very clear and said over and repeatedly through its VAT implementation team that customs duties will be reduced by 17 per cent across the board, eliminating some $300 million in customs duties; the revenue replacement will be the application of a 15 per cent VAT that will broaden the tax base, raise approximately $500 million in revenue and increase government’s revenue by some $200 million.
“The government could not be any clearer in communicating its fiscal consolidation plan and the underlying reasons to the general public.”
Mr Roberts claimed Sir William issued his warning only to create “political mischief and confusion”.
He noted that Sir William was a consultant to the Ministry of Finance under the FNM when the government incurred $2 billion in budgetary deficits.
“This trend is unsustainable and requires immediate, drastic and decisive actions.
“The Rt Hon Perry Christie and the Hon Michael Halkitis are leading this charge and the Progressive Liberal Party fully supports VAT, the anchor of the government’s fiscal consolidation plan.
“Bahamians are well aware of the fiscal challenges that confronted Jamaica some years ago and how that turned out; Barbados is facing similar fiscal challenges.
“For our part, this government is determined and resolute in its commitment to pulling the Bahamas from the edge of the fiscal cliff, a precarious position not of its own making, but a precarious position this government was charged by the Bahamian to correct and regularise. We thank them for their confidence and continued support.
“Given the urgency of the hour and the critical importance of VAT to our economy and public finances, I decry the disproportional volume of misinformation, salacious headlines and rank negativity put in the public domain day after day.
“Creating confusion, negativity and hysteria in the public domain hurts everybody because we are all in the same proverbial boat and on the same pieces of rock we call The Bahamas.
“In the current circumstances inaction by the government is not an option and hurts everybody and so would a delay in the implementation of VAT.
“The government relies heavily on the fourth estate for measured, sober, balanced, but critical commentary on this national issue and opinions not supported by empirical evidence should be vigorously challenged.
“I point out that both major political parties (PLP and FNM) agreed with the necessity of VAT as one of the sustainable fiscal measures in facilitating the functional and structural transformation of our tax regime to assist the government in better meeting the fiscal demands of our developing nation.
“I am confident that in the end this government will make the right decisions that are in the best interest of all Bahamians and the country’s economy will emerge stronger as a result,” he said.
Comments
The_Oracle 11 years ago
" “For our part, this government is determined and resolute in its commitment to pulling the Bahamas from the edge of the fiscal cliff, a precarious position not of its own making, but a precarious position this government was charged by the Bahamian to correct and regularise. We thank them for their confidence and continued support".
A Fiscal cliff created by the Government administrations of the Bahamas over the last 40 years. All of them without exception, spent and wasted tax revenue, and set the people up for hard times when the gravy train ran out. That train is pulling into the final station.
ohdrap4 11 years ago
have politicians started to pay customs duty yet?
Guy 11 years ago
Rather than lambasting naysayers about the implications of VAT, the government should educate the public on EXACTLY how it will work. The small bits and pieces of sometimes conflicting information being circulated by this administration is really sad and wreaks of incompetence at the highest levels. We have yet to see the long promised draft legislation and regulations as it relates to VAT. We have no OFFICIAL information on what to expect from this. Just sound bites and misrepresentations. Perhaps the government should blame itself for the "public hysteria" on VAT because it seems like we will know nothing of it before the July 2014 implementation date. Instead of bashing those who have doubts about the effectiveness of VAT, the government should educate us on it and help us to understand its value.
USAhelp 11 years ago
If thsy tell you how it will work thsn it will be hard to change the rules
John 11 years ago
Travelled to Miami not too long ago. Coming back through customs the person in line in front of me had a flat screen tv, a microwave and 3 suitcases and other items. The customs officer called him by his name and told him he could "go". Did not even open the suitcases or take a declaration form from him. But the same officer charged me $456.00 on the $1,100.00 I spent. The officer went back over and changed the declaration and made me pay customs duties on the US taxes even. As long as we have an unfair and unbalanced tax system (or corruption), the system will not work.
John 11 years ago
Government could have raised over $100 million by regulating and taxing the numbers racket that is now sucking every available dollar out of the economy. That and BTC that is selling over $130 million in phone cards and top up and not properly compensating vendors who do the selling for them.
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