The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Government has “no choice” but to regulate and tax the web shop industry, a leading businessman said yesterday, adding that the current situation was “simply unacceptable”.

Dionisio D’Aguilar, Superwash’s president, told Tribune Business that the Government could not demand more taxes from legitimate businesses without first addressing the unregulated and untaxed web shop industry.

“The Government should do what it has finally agreed to do. It was impossible for the Government to do any other thing,” Mr D’Aguilar said.

“The current situation was just unacceptable; widespread violation of the law, and the Government didn’t have the political will nor the political resources to enforce the law. As a result, it did what it had to do which is regularise and tax this very lucrative sector of our economy.

“The Government had no choice. So much of the resources of the Bahamian people are being diverted into this sector. It was impossible for them to come to all the other law-abiding citizens and say that you must pay more taxes without having addressed this problem. People felt very strongly about that. It was unacceptable. It almost made want you to evoke a peaceful resistance.”

During his contribution to the Mid-Year Budget debate, Obie Wilchcombe, minister of tourism, who has responsibility for gaming, said the Government will regularise and tax web shop gaming by July 1.

He noted that the government will bring regulations to the House of Assembly within the next two weeks, which will legalise the industry.

“I think the people employed in that sector can breathe a sigh of relief,” Mr D’Aguilar said. “The businesses involved in that sector can now be invited into the formal economy, put their money in the bank and participate in our economy.

“Once you start to regulate and tax it, you can start to address the social issues. You can tax it and sort of change behaviour. By outlawing it you’re not going to change any behaviour.”

Mr D’Aguilar added that there was a need for a shift in taxation attitudes in the Bahamas. “The discussion really needs to start now as to how we limit the growth of our country’s debt,” he added.

“We cannot leave it in the hand of the politicians. There have to be some statutory safeguards so that irresponsible politicians do not =drive us to this problem,” said Mr D’Aguilar.

The Coalition for Responsible Taxation’s co-chairman, Robert Myers, said he welcomed the move by the Government. “You either have to regularise it or close it, enforce the rule of law and do what’s right. You can’t ask people that are paying taxes to pay more taxes when other people aren’t paying any,” said Mr Myers.

“We’re happy to see that the Government has made a move to regularise. We are happy to see those revenues contribute to the needs of the country. Our stance on it is regularise or close. That’s always been our position. We’re happy that a decision and an action is being taken. It shows good leadership, and is obviously going to have a positive effect on the economy.”