By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
MICHAEL Halkitis, State Minister for Finance, yesterday warned business owners, who might already be charging customers Value Added Tax, that they will be prosecuted to the fullest extent of the law.
Mr Halkitis’ comments came after rumours began spreading and pictures of receipts surfaced on Facebook from Bahamians claiming to have been charged VAT at stores and restaurants in New Providence.
The State Minister said it is against the law for anyone to be charging VAT because the legislation has not been passed in the House of Assembly and the money now being collected is not being turned over to the government.
“We have also heard the rumours and I understand some things have been up on social media, where they say people have been charging VAT and the message I want to convey is that VAT is not in the law, it is our intention to have it law by July 1 that is our target date. At that time, after that time, even after that, only those businesses who are registered will be allowed to charge VAT.
“Any business who falls under the threshold and is not registered will not be allowed to charge VAT,” he warned.
“So I understand there is a lot of concern, a lot of opposition, a lot of questions being asked, we are trying to give as much information as possible, but VAT is not the law as it stands now, as it is illegal for any business to charge a Bahamian VAT. The concept of VAT is that the customer will pay it, the business will collect it and pass it on to the government. The government is not collecting on that so-called VAT being charged, so those businesses who may be doing it or are tempted to do it, we just ask them to refrain.”
Mr Halkitis said if any business is caught charging VAT, they will be prosecuted as far as the law allows and have their business licences revoked.
“It is definitely in contravention of any license they have,” said Mr Halkitis, “it would be breaking the law because VAT is not the law and in order to be able to charge it we have to pass legislation in the House to say ‘Okay here is VAT’ and so we have asked anyone who has been charged VAT, if you have a receipt showing that a business has charged VAT, please report it to us so that we can communicate it directly with those businesses and remind them not to do it and remind them of what the law says. We understand people have their strong opinions and they may be opposed to it, but by charging people VAT and creating that hysteria that is not the solution.”
VAT is expected to be introduced on July 1. Mr Halkitis is encouraging anyone who may have been charged VAT to contact his Ministry immediately.
Comments
Thinker 10 years, 10 months ago
Tell me though, what happens when Big Totalitarian Government takes VAT from us without our permission? How do we hold them accountable for theft? What happens when Big Totalitarian Government incorrectly spends my families' income on frivolous unneeded expenditures from these new taxes, as they have shown to misappropriate THE CITIZENS' MONEY throughout time? Who will be held accountable to the fullest extent of the law? Are they now? Because I would support that lawsuit or move towards a prosecution.
B_I_D___ 10 years, 10 months ago
One of the gotcha's with the legislation they are putting forward is they will have immediate and uninhibited access to your companies operating bank account...what THEY think is the right amount of VAT to be paid to government they will automatically deduct it from your bank account...if there are errors or corrections, you need to go through a process to reclaim it...NICE
crawfish 10 years, 10 months ago
I 'think' some people are being foolish!
leonardlaing 10 years, 10 months ago
Mr. Minister you have heard..... Please get facts first before shooting off your big mouth...
newcitizen 10 years, 10 months ago
They can't even prosecute murderers, you really expect them to be successful going after businesses for charging VAT.
John 10 years, 10 months ago
Persons may have been testing their software in preparation for the tax. The tax may show up on the receipt but the customer does not pat it.
sjohnson 10 years, 10 months ago
John,
Can you please give S Johnson a call. my work number is 328-7111 and my email address is sindear.johnson@yahoo.com Thanks. This is URGENT!
ohdrap4 10 years, 10 months ago
bad idea to post your email here, the hackers will steal it.
watcher 10 years, 10 months ago
I made a similar comment some months ago, but please Mr. Halkitis, when is the Government going to officially issue VAT registration numbers to businesses, and have these numbers published on a website and in the local press, so that the public can know who can legally charge this pernicious stealth tax? Should I hold my breath whilst waiting........
rony 10 years, 10 months ago
Tribune really? Your not allowing us to comment on some of the news. I wanted to write a comment on them 40+ poachers with such small fines. Oh I just made my comment.
sheeprunner12 10 years, 10 months ago
The caption is a clear indication of the chaos that will happen in this country if VAT is even debated in the House.
Lets look at what has happened............. PLP had a numbers referendum, citizens voted NO and numbers houses continued because of the pending legal case
So if there is even an inkling that VAT will come on stream, businesses will get a jump on it
All this government is doing is causing more confusion
pat242 10 years, 10 months ago
A wholesale establishment on Mackey Street has increased its prices without notice. I ask the casher wtf going on. She replied my boss getting ready for VAT. I spoke to the manager and he replied the government have to catch me. I making my money before July. So there is some truth to this claim.
ohdrap4 10 years, 10 months ago
Well, i think several businesses are doing that.
But as the radio ad from the ministry of finance says, merchants are free to mark up their product as much as they want. Under VAT the govt would be happy, as they would collect more tax anyway.
I would be happy as a merchant:
Right now, a merchant marks up on 45% duty, i pay it.
As of July first, he will mark up on 45% (which by then will be vat + duty), i pay that plus 15% to the govt.
at the end of the day, the govt gets 30% , plus 15% on the markup, that will be more than 45%. The govt. is double dipping.
The merchant gets his 15% original VAT credit, but i paid 15% on the markup that included VAT. The merchants are triple dipping!!!!!
then they go around crying poor mouth about price controlled items!!!
I am stocking up, I am stocking up.
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