The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WITH the Government having essentially won public approval to raise more revenue via increased taxes, a prominent businessman said it could “win big” by allowing the Bahamian people to decide how they will be taxed.

Speaking on the heated debate regarding the implementation of a Value-Added Tax (VAT), Ethric Bowe warned that an even bigger issue was productivity, noting that this country was “not up to par” in that regard.

“Productivity is the real issue here. It doesn’t matter what tax they come up with; this country is not up to par in terms of productivity,” said Mr Bowe.

“The Government has already won its position because people are not discussing whether we should raise more taxes or not. They are arguing what form the taxation should take.

“Pretty much that means we have accepted that we will give the Government more money. The Government has won the approval for more revenue. What we’re now having is a p*ing match,” said Mr Bowe.

The Government’s plans to implement VAT on July 1, 2014, have caused an outcry from some members of the private sector.

However, Prime Minister Christie said he is willing to listen to the them on alternatives to VAT.

“You don’t need a particular anything. What you need is the money. This administration could win big by throwing the ball to the business community and say: ‘Listen, we need $800 million, come back to us and tell us how to get it’,” Mr Bowe said.

“The people will then agree on how to be taxed. Then government would satisfy the people and get the money they want. So it will be everybody wins. The people will say this is how I’m going to be taxed, the Government gets its revenue and ultimately we should see an upgrade instead of a downgrade. We have a wonderful opportunity before us and it will be interesting to see how it will play out. We need some maturity.”

Commenting on the Coconut Grove Business League’s (CGBL) legal fight, which has now advanced to the Privy Council, Mr Bowe said: “We have paid to have the lawyers in London start prepping. That’s in the pipeline now. We’re waiting to hear when the case will be looked at.

“Once it goes to the Privy Council hopefully we should come to a quick end.”

The CGBL, a group of some 50 businesses, took their fight to court, and in December 2011 secured a victory in the Supreme Court against the Government over the road changes, only to see that decision overturned by the Court of Appeal.

The CGBL has been lobbying for several years for an end to the system that currently sees traffic go one-way northbound on Blue Hill Road, and one-way southbound on Market Street.

The group was among many which complained that the adoption of this system adversely affected their businesses, with several companies in the area having closed down as in recent years.