The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

FISHERMEN are preparing to forward a list of queries to the Ministry of Finance relative to how the industry “as a whole” will be impacted by the proposed Value-Added Tax (VAT), the head of the Bahamas Commercial Fishers Alliance also expressing concern that they were not getting “fair market value” for certain products.

BCFA president Adrian LaRoda claimed that many restaurants were selling tilapia as a replacement for grouper at the same price.

“At the moment our fishermen have a great problem trying to get fair market value for a fisheries product such as grouper, for instance, because a lot of restaurants have decided that they are going to import some fish like tilapia from somewhere and pass it off as grouper,” Mr LaRoda claimed. “That’s a major concern for us. We have gotten the cooperation of one or two restaurants that have said that they will tell their patrons that they aren’t getting grouper and that they are getting some other fish.

“If they want grouper they would have to pay ‘x’ for grouper rather than selling some cheap fish passed off as grouper and still charging the same price. Our fishermen haven’t been able to sell grouper to a lot of restaurants and it has hurt the industry.”

Speaking on VAT concerns, Mr LaRoda said that, while the industry had not had any formal discussions with the Ministry of Finance or VAT coordinators, the BCFA was preparing a document outlining several concerns relative to the potential impact of the tax on the industry as a whole.

“While we understand from the white paper that fisheries products are exempt from VAT, there is still the concern of doing business in the fisheries sector. For instance, the cost of fuel and other necessities. When you look at parts for your vessel, are they VAT-able or not? We don’t know. We have prepared a document which will be sent to the Ministry of Finance asking some questions. There seems to be no clear indication as to how VAT will affect the fisheries industry as a whole.

“It’s okay to say that fisheries products are exempt but that’s only part of the issue. The other is the cost of doing business for fishermen which we know is expensive,” Mr LaRoda said.

And he added that there were questions over current exemptions granted to fishermen.

“While we accept that we get duty free concessions on some items we want to know if the duty free exemptions will continue when VAT is implemented,” said Mr LaRoda.

He further explained: “At the moment we enjoy duty free concessions on parts to repair your craft, engine parts and that sort of thing. In order to access that, the fishermen must be licensed and be in possession of a duty free card. With the substitution of import duties for VAT, will the same system be maintained? It would be nice if we could have further concessions on fuel so that we could bring the cost of seafood products down and keep it in the price range of the average Bahamian household. There are a number of unanswered questions we are trying to get answers on. It will be great of the government could push the VAT implementation deadline back to be able to get the broadest possible participation from all sectors.”