The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Gaming Bill’s legalisation of web shops was yesterday described by a leading private sector executive as just “one step” in a much-needed effort to tackle the informal economy.

The Bahamas Chamber of Commerce & Employers Confederation’s (BCCEC) chairman, Robert Myers, told Tribune Business that while the regulation and taxation of web shops was a necessary move, it was just one step towards a necessary clean up of the informal economy.

“That’s just one step. What about all those companies selling cars or goods on the side of the street, or persons acting as sub-contractors without a Business License?” he asked.

“All those companies are illegal companies. It’s a very good example of where multiple governments for years failed to enforce the rule of law and shut down these businesses while they continued to tax legitimate businesses.”

Mr Myers added: “They need to clean up the informal economy. A large part of the problem that the private sector has is that there is too much going on in the informal economy, which hurts the formal economy.

“If those businesses exist untaxed in the open, that means that the Government is collecting less money and the private sector is challenged by unfair competition. It’s not a situation that can exist. If you’re not prepared to close down the informal economy you are going to have compliance issues.”

The BCCEC chairman said this was partly why the Chamber had been pushing to take over Business License registration from the Government.

“This is why we had asked for the Chamber to be the registrant, because it’s politically unpopular for them to close businesses. If the Chamber is responsible for that and does not receive all the required documentation and paperwork, then it would send out a list of companies that are acting in the informal economy and be motivated to see the closure of those businesses. That’s a significant issue,” Mr Myers explained.

“A large chunk of the issue of non-compliance is the authorities are failing to enforce the rule of law. If taxes are to remain fair and equitable to all, then the informal economy must be shut down and the rule of law must be enforced,” he said..”