The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Government should, as a matter of priority, address the private sector’s outstanding concerns over Value-Added Tax (VAT) as a sign of respect for the government/private sector relationship, the Bahamas Chamber of Commerce and Employers Confederation chairman said yesterday.

Gowon Bowe said that the private sector has shown “great maturity” in moving past its reservations. Mr Bowe told Tribune Business yesterday that the list of private sector concerns posted since December on the Coalition for Responsible Taxation’s website has still not been addressed. The ‘consolidated issue list’ touches on issues such a price control, duty reductions and VAT-inclusive pricing.

“The issues list that we put up has still not been addressed in terms of the Ministry of Finance,” he said. “The disappointment with that is that really I think the private sector has shown great maturity in moving past the reservations and moving ahead with all that has been laid out. The issues that were raised were some of law, some of practicality and some just wanting clarity.

“The respect factor that I have spoken of many times between the Government and private sector being both ways is that failure to answer or address matters that have been raised by the private sector does not breed confidence that the relationship is a two-way street. It comes across as ‘well we needed your commitment to get it done and now that we have it done we will move onto the next crisis until we need you again’.

“We need the government to appreciate that, as a partnership, it has to go in both directions where we are constantly having dialogue and feedback. We are not going to be in agreement each time and very rarely we are going to be in agreement. As it relates to VAT I think addressing the open issues list should be a priority to show a level of respect for the relationship and dialogue we have had up to this point in time.

“We can either fight the government because we disagree with its policy or step back and be mature and say we are part of the solution and therefore we are working with them. We, however, want them to show the respect and gratitude if you will for the maturity and effort and by the private sector to comply.”

Mr Bowe said that while there have been no critical legal challenges relative to VAT to date, it would not be wise to assume that there will be none. “I do believe that there are some legal challenges that are imminent,” he said. “I don’t think it would be wise to assume that the quiet demeanour up to this point in time means that everyone is happy with some of the decisions that have been taken.”