The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Tax Coalition will take the lead in tackling all outstanding Value-Added Tax (VAT) concerns due to the Government’s “slower than anticipated” response, its chairman yesterday promising it “will not relent” on wider fiscal reforms.

Gowon Bowe told Tribune Business that with 35 days left before VAT’s January 1, 2015, implementation, the private sector “can’t wait for the Government” to draw up a list of all remaining issues.

Emphasising that the Coalition, and Bahamas Chamber of Commerce and Employers Confederation (BCCEC), were not taking a “combative” approach, Mr Bowe said companies needed to know exactly where they stood in relation to the Bahamas’ new tax regime.

“Unfortunately, it’s moving a lot slower than we’d like to see happen,” Mr Bowe told Tribune Business, on his hopes that the Government would work with the private sector to draw up a list of all outstanding VAT issues.

“We’re about to take our own position in terms of getting all the issues from the various industry groups and businesses represented on the Coalition, and have them in one document on a consolidated basis.”

Mr Bowe, a PricewaterhouseCoopers (PwC) Bahamas accountant and partner in his ‘day job’, said the “ideal” was to have the Government draw up such a list

However, it appeared that the relevant information was spread around “various” parts of the Government, which was having difficulty pulling it all together.

Mr Bowe said the list sought by the Coalition would detail what the remaining issues were, which part of the legislation/regulations they were in; proposed solutions from both the Government and the private sector; and whether each issue was “closed or open”.

“It’s important for businesses to known what matters are still pending and what is closed,” Mr Bowe told Tribune Business. “It will be a good tool to mark progress......

“It’s not to be combative. We’re simply sitting here, knowing the New Year is upon us. It’s important the business community has an idea of all the issues.”

With some unresolved matters affecting all businesses, and others industry specific, Mr Bowe said a list would enable the Chamber and Coalition to prioritise and work through them in order of importance.

And he reiterated that the Coalition had not abandoned its campaign for wider fiscal reform, which includes reductions/caps on government spending and greater accountability and transparency on the Government’s part over the way it uses taxpayer monies.

“This is one of those areas we are not going to relent on,” Mr Bowe told Tribune Business. “If you speak to the general public, their concern is that while they accepted the need for tax reform and the Government raising new revenues, no one is prepared to give the Government a blank cheque to embark on a spending spree or wasteful exercises.......

“There has not been enough movement on legislation and activities to spur fiscal reform.”

Mr Bowe acknowledged that “positive steps” were being taken by the Government, including the $33 million Inter-American Development Bank (IDB) financed initiative to reform public sector financial management.

Other programmes he cited were the Customs modernisation initiative, and the ‘conditional cash transfer’ programme to “stop corruption and inappropriate distributions” of food stamps to persons who did not need them.

“What we’re hoping is that they sit at the table and work with us on comprehensive fiscal reform plans, curbing spending and working on economic growth plans,” Mr Bowe told Tribune Business.