The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

TOURISM industry stakeholders yesterday welcomed the move to regulate and tax the web shop industry, a leading executive telling Tribune Business: “We are hopeful that it goes a long way toward the Government reassessing its VAT position”.

Robert Sands, senior vice-president of external and government affairs at Baha Mar, told Tribune Business: “The industry leaders have recommended as part of our ‘smart tax plan’ that the Government considers regulating and taxing web shop numbers, so we welcome that decision and we are hopeful that it goes a long way towards the Government reassessing its VAT position.”

The Government is proposing to implement Value-Added tax (VAT) on July 1 at a rate of 15 per cent, with the hotel industry to be subject to a lower 10 per cent rate. The Government expects to generate an additional $200 million in revenue from the new tax regime.

But tourism industry stakeholders are promoting their own ‘smart tax five-point plan”, warning that VAT could hurt tourism and jeopardise 97,000 Bahamian jobs.

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 added that the Government will bring regulations to the House of Assembly within the next two weeks that will legalise the industry. “We will have to wait and see what the Government comes back with in terms of what those regulation are,” said Mr Sands.

Speaking on the Baha Mar development, Mr Sands said it was on scheduled for its December 8 opening, and expressed confidence that there would be sufficient airlift to meet demand.

“We’re continuing to wok on airlift. We continue to be encouraged. Jet Blue has announced that they are going to increase their new daily service out of Reagan International in Washington, starting in June. AirCanada already announced some proposed increases this year, and Delta already increased their capacity. The airlift strategy is working and growth opportunities are taking place,” said Mr Sands.