The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Tax Coalition’s co-chair yesterday described Prime Minister Perry Christie’s pledge that he would not allow tax reform to slow the economy as “fantastic”, telling Tribune Business the organisation hoped to make “some real headway” shortly.

Robert Myers was responding after Mr Christie’s conciliatory remarks at yesterday’s Bahamas Business Outlook conference, in which he seemingly left the door open to Value-Added Tax (VAT) alternatives and continued consultation with the private sector.

The Prime Minister also referred somewhat vaguely to another study the Government has commissioned on VAT, which he promised would “address all the issues, concerns and alternative recommendations”.

“Our objective is to have a system that provides adequate revenue for modern governance, while providing economic growth, transparency and efficiency. We continue to listen to alternative proposals that will achieve objectives,” Mr Christie said.

“It is clearly not in the best interest of Government, the business community nor the people of the Bahamas to have a taxation system that leads to economic slowdown, loss of jobs .

“My Government will work assiduously to avoid any such development. We are more likely to have a positive outcome by working together than against each other.”

Responding after being told of the Prime Minister’s comments, Mr Myers said the Coalition for Responsible Taxation was seeking to re-engage the Government - and especially the Prime Minister’s Office - on tax and fiscal reform as soon as possible.

“That’s very good to hear,” he added of the comments contained in the Prime Minister’s written address. “We haven’t been told otherwise, and are still on that path of let’s work this thing out.

“We’re continuing to educate the public as to the nature of the VAT tax on the consumer, and are trying to work through a solution with the Ministry of Finance, the Government and Office of the Prime Minister using whatever sources we can for data and economic modelling.”

The nature and tone of the Prime Minister’s remarks are likely to encourage the private sector, and many Bahamians, to believe that VAT is not ‘set in stone’, at least at the policymaker level, despite the Ministry of Finance and its Implementation Unit pushing full speed ahead with the tax’s introduction by July 1.

Most observers, though, believe that the ‘die is cast’ when it comes to VAT, and that the Government will not deviate from its fiscal reform plans and timetable. Some have even suggested the Prime Minister is simply trying to mollify the opposition to the new tax.

Sounding an equally conciliatory note, Mr Myers added that the Coalition was hoping to arrange its first 2014 meeting with the Prime Minister’s Office this week.

“We hear all kinds of rumours on the street and you never know what to believe,” he said, “but it’s good to hear that he [the Prime Minister] stands in favour of this type of approach.

“With any luck, we’ll get some real headway in a short period of time.”

Mr Christie, meanwhile, returned to an idea previously articulated, telling the Business Outlook conference yesterday that he planned to appoint a National Economic Council that will advise the Government on ways to grow the economy and generate employment for Bahamians.

And he suggested that private/public sector partnerships on infrastructure development, and utilities reform, would extend to getting private capital involved in the renovation of government buildings.

“Another critical focus you will see emerge is an approach to bringing private capital to bear on the rehabilitation of old and dilapidated government buildings,” the Prime Minister said.

“This would reverse the trend of increasing expenses on rent and restore government buildings to use.”