Pictured are John Shewan, Adjunct Professor of Accounting, and Don Brash, of Brash Consultancy Service.
Reader poll
Do you agree with VAT tax expert Dr Don Brash that VAT should be delayed until April 2015?
- Yes, VAT SHOULD be delayed until April 2015
- No, VAT should be implemented on the proposed date of July 1, 2014
59 total votes.
By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
INTRODUCING Value Added Tax to the Bahamas would go “even smoother” if the opposition stands with the government instead of against it, New Zealand VAT expert Dr Don Brash said.
Dr Brash also added that the Deputy Leader of the Free National Movement, Loretta Butler Turner’s
suggestion of payroll tax instead of VAT is not the best choice for the Bahamas.
“I noticed in The Tribune that the opposition party is proposing to scrap the VAT and replace it with payroll tax. We strongly feel like VAT is a stronger tax than payroll tax, but in New Zealand every political party in Parliament supports VAT. We feel that is one of the reasons it has been a success,” he said.
“Nine months after it came in, the opposition party, of which I was later leader of for three and a half years, that party also said scrap VAT and replace it with another tax. They lost the election. Then they dropped the policy and ever since it’s been in total agreement across Parliament for support of the system. It is no longer a political issue. It’s worth just saying that here the opposition appears to be saying scrap it. I hope they will see the benefit in a tax where most people see is the least damaging. No tax is a good tax, but it’s the least damaging tax. I know opposing is what the opposition does, but I hope they can work with the government on this in order to do what is best.”
On Tuesday, Mrs Butler-Turner suggested that a payroll tax coupled with another revenue generating scheme, such as a national lottery should be implemented rather than the controversial VAT.
According to Mrs Butler-Turner a payroll tax could be implemented similarly to the National Insurance Board’s contribution system which makes deductions from salaried workers who earn $600 per week or more.
“The reason why I would suggest payroll tax is because you can use more modality with that form of taxation,” Mrs Butler-Turner said. “But this government is so hellbent on introducing VAT that they have dismissed the suggestion.”
On Monday Michael Halkitis, State Minister for Finance, said that if VAT comes on stream this year it would not be until the last quarter.
However, VAT experts have suggested an implementation date of April, 2015.
Comments
proudloudandfnm 10 years, 7 months ago
So sorry but these two dudes no NOTHING of the Bahamas. Do they know how much in back RPT is owed to our lazy ass government? Do they know how many millions we waste every year on useless corporations like B'air and ZNS? Do they know the horrible level of corruption in our government? They don't know squat about the Bahamas.
No new taxes until our government grows up and starts to act responsibly.
I don't care what tax you talk about. NO NEW TAXES! Period....
thomas 10 years, 7 months ago
WHY ARE THEY STILL HERE?
B_I_D___ 10 years, 7 months ago
And THIS is why these guys get paid the big bucks..."INTRODUCING Value Added Tax to the Bahamas would go “even smoother” if the opposition stands with the government instead of against it, New Zealand VAT expert Dr Don Brash said."...pure genius...why didn't we think of that..IDIOT. So basically everyone who has their doubts about VAT should just shut up and join the line of kissing the behinds of the people trying to ram VAT down our throats. Oh wait...the PLP MP's have been saying that all along, to stop objecting to it. We wouldn't HAVE to object to it if you went about it properly, cleaned up all the dirty laundry before hand and moved forward with a clean slate. Clean up the existing outstanding amounts due in the other revenue streams, present a clear and defined budget reduction plan, roll out the Freedom of Information Act, and stop just giving out multimillion dollar contracts to failed contractors. Then and only then, embark on a massive campaign on education about VAT. Have EVERYTHING you need ready to go so you can answer some very pointed and loaded questions from the concerned public. As a major business owner, I still don't know squat about exactly how it is meant to play out, no one has bothered to come to our business and review what systems we have in place, and make suggestions on the best way to link into this new VAT realm in the electronic age. Oh wait, let me guess...it's all going to be handled by paper pushers...OH WAIT!! I get it now...that's the 10,000 jobs!! Everyone will need to file unknown and undisclosed paperwork (still haven't seen the first concept of any forms out of them), they need an army of 10,000 staff to go through the various filings, and make sure some get filed appropriately, and make sure that other 'special ones' get filed into a back office somewhere and conveniently 'lost'. You HAVE to lay the groundwork FIRST, get EVERYTHING done...FIRST...before we take the plunge into VAT.
thomas 10 years, 7 months ago
OMG...Former National leader Don Brash contemplated suicide after his private and public lives fell apart.
In his autobiography Incredible Luck published today, Brash reveals the toll on his marriage after he entered public life, and also lifts the lid on some long-standing secrets.
Among them is that he never intended serving out a full term as prime minister had he won in 2005 - and that he and John Key hatched a plan in a Blenheim motel room for Brash to hand over the reins to Key before the 2008 election.
Nowadays, Key doesn't return his calls, and Brash strongly suspects National plotted with Epsom MP John Banks to manoeuvre him out of the ACT leadership. He even questions whether that may have been the real reason for Key's determination to keep secret the so-called teapot tapes recording a conversation between him and Banks without their knowledge
DillyTree 10 years, 7 months ago
As Proud says, "No new taxes until our government grows up and starts to act responsibly."
One thing I've not seen in all the VAT discussions is an estimate on how much money could be saved if government were to curb spending. Would we still need to have VAT under those circumstances?
The other thing that baffles me even more is how this government will collect VAT - given that they don't seem to be able to collect the taxes already on the books. Outstanding taxes need to be collected before raising new ones!
Tarzan 10 years, 7 months ago
These clowns need to go back "Down Under".
Seriously, New Zealand has a significant export economy. That is why a VAT tax scheme makes sense there. The Bahamas exports nearly NOTHING!!!
When will someone get it. Without a significant export economy, VAT simply imposes a super complex reporting regime on everyone for NO PURPOSE whatsoever. A simple sales tax which is much more easily administered will work just as well.
Further I cannot agree more with the commentator above who points out that any government that cannot effectively collect a real property tax, is ipso facto incompetent to collect any other form of taxation. Implementation of a VAT tax in this country will prove an administrative nightmare and a total joke.
SP 10 years, 7 months ago
"INTRODUCING Value Added Tax to the Bahamas would go “even smoother” if the opposition stands with the government instead of against it, New Zealand VAT expert Dr Don Brash said."
"Dr Brash also added that the Deputy Leader of the Free National Movement, Loretta Butler Turner’s suggestion of payroll tax instead of VAT is not the best choice for the Bahamas."
Vel by dam, where does Christie find these genius's?
BRILLIANT!.....Absolutley, unquestionably the most profound deduction statements since the last couple of genius's Christie paid Millions to from the U.K. to advise us on gambling.
How much of MY MONEY is Christie paying these gentleman to parrot Christie's agenda?
Where are the "experts" from the remaining 99% of countries where VAT is a total failure?
Yes we do need more tax's....But I am not even partially convinced that VAT is the right way to go.
Christies two geniuses made matters even worse!
B_I_D___ 10 years, 7 months ago
Whatever you do boy, you just better fall in line and agree with the government, you just gonna make things difficult if you oppose it. So let's not go down that path, just follow me, I know what I am doing!! BULL CRAP
Publius 10 years, 7 months ago
These actors are pretending to knock payroll tax when New Zealand gets most of its tax revenue from income tax.
paul_vincent_zecchino 10 years, 7 months ago
So, let me get this straight, OK? Just be quiet, don't ask inconvenient questions, and pass our New Zealand VAT and everything will be just peachy keen?
Is that it? That the Yellow Brick Road? Just want to make sure I understand this.
Thanks.
Silly me, here I'd spent most my sixty years believing that the power to tax is the power to destroy and that no society in history ever taxed itself into prosperity and that VAT taxes in particular harm everyone, business and customer alike. Silly me, what do I know? Guess we should all become like socialist Europe and New Zealand.
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