The Tribune

Bahamians need to undergo a cultural change when it comes to borrowing and financial management as the Government readies to implement Value-Added Tax (VAT), a business consultant has warned.

Speaking at the Bahamas Technical and Vocational Institute (BTVI) on the topic, ‘VAT and the Bahamian Consumer’, Bridgette Mackey, who assists businesses with VAT preparation, said that as the Government is taking measures to increase its revenue base and decrease spending, consumers ought to do the same.

“As a culture, we borrow. That mindset has to change. The banks make a killing on our debt. The Bible says: ‘The borrower is slave to the lender’. Let’s start saving,” stressed Ms Mackey at the forum organised by BTVI’s Business and Student Affairs departments.

“If we all take a look, we probably will find some area of waste,” said Ms Mackey, adding that every working person should have a budget and stick to it.

She added that when people are not taking note of what they are spending each penny on, the money is subject to waste.

Ms Mackey’s advice for saving included tracking all daily spending, as it gives a picture of where one’s money is going; saving towards vacations, back-to-school, Christmas shopping; teaming up with others to purchase goods in bulk; and cutting out items which add no value to one’s life.

Ms Mackey added that there may be businesses which decide to capitalise on VAT unscrupulously. She advised attendees to be vigilant.

“Be on the look out for businesses which hike prices to take advantage of customers. Make note of what you’re paying for items now, compared to when VAT comes on stream,” she added.

Ms Mackey said receipts should clearly indicate the VAT amount being charged, and consumers should be aware of items that are VAT exemp and ensure they are not being taxed on those.

She encouraged BTVI’s students, staff and faculty to examine their household circumstances and make adjustments in preparation for VAT.