VAT 'vital to country's long-term strategy' says financial secretary

John Rolle, Governor of the Central Bank

As of Tuesday, March 18, 2014

THE implementation of VAT is vital to the country’s long term strategy to reduce borrowing levels and prevent the devaluation of the Bahamian dollar, Financial Secretary John Rolle told some 150 managers of the National Insurance Board at a recent meeting.

Mr Rolle said that VAT’s implementation, coupled with budget reduction and a slowdown in government spending, could greatly improve the country’s financial outlook.

“VAT will ease the collection of government revenue and simplify our tax system. It will go a long way in giving the country that $500 million turnaround we are looking for,” he said.

However, Mr Rolle admitted that VAT alone will not save the fiscal position of the country. He noted that tighter controls on government spending must be balanced with improved revenue performance from existing tax types, including customs duties, excise taxes, business licensing and real property tax.

“Then, gradually, we will see lower inflation plus added cost of living adjustments. What this represents is an investment in the Bahamian economy. So what we are doing is increasing our outlook for the economy,” he said.

Implementing VAT, Mr Rolle said, is an essential step in modernizing the country’s tax system and offering a more equitable form of taxation.

PapaGolf 10 years, 9 months ago

I'm cringing right now (a la James Smith).

Want to know what the country's long-term fiscal strategy SHOULD be? (1) Reduced spending = reduced borrowing; (2) Collection of the other 75% (estimated by the IMF) of annual taxes/customs duties that go uncollected.

Simple, but so politically hard to do.

ThisIsOurs 10 years, 9 months ago

I thought the webshops gaming legislation was the panacea...it looks like it will get here before VAT, it's obviously a campaign priority...

GrassRoot 10 years, 9 months ago

hello, does anybody knows whats happening with BEC? is Mr.Wilson already the new owner?

proudloudandfnm 10 years, 9 months ago

How the hell can he say VAT will simplify our tax structure? Do these people think before they talk? VAT will convolute the hell out of our tax system and out of our cargo clearance processes. This man needs to think before he speaks....

The_Oracle 10 years, 9 months ago

A total 100% IMF stooge. “VAT will ease the collection of government revenue and simplify our tax system." Our tax system is about as simple as it can get right now. Everything comes in over the border, all they have to do is collect, which admittedly seems beyond their capabilities. Then on top of this, we have 150 N.I.B. Managers?!