EDITOR, The Tribune.
It is the position of the Minister of State for Finance Michael Halkitis that valued added tax should be applied to gasoline. The transition to VAT has not been a seamless one.
The process has been somewhat gawky, as many Bahamians are still struggling to grasp the VAT system.
In fairness to the PLP administration, it was widely anticipated that there would be a few hiccups in the embryonic period.
This was evidenced by the apparent confusion over VAT and the law regulating fuel prices among members of the Bahamas Petroleum Retailers Association, as per The Nassau Guardian.
The average price for a gallon of gasoline in New Providence is, give or take, approximately $4. The government collected about $1.18 per gallon in gasoline taxes before VAT, while gasoline retailers collect just $0.44 and oil companies $0.33 respectively in profits per gallon.
Combined, the retailers and oil companies’ profit of $0.77 is $0.41 less than the government’s intake per gallon, before VAT. At approximately $4, it would then mean that the government would earn an additional $0.30 per gallon, based on the VAT rate of 7.5 percent.
So instead of collecting just $1.18 per gallon, the government will instead be collecting $1.48. The government does not import gasoline and other petroleum products. The government does not store it. And the government does not own service stations.
The oil companies and gas retailers do. Yet the government collects a substantial tax fee out of every gallon of gasoline imported into the country while the oil companies and gasoline retailers, who already have significant overhead costs, are allowed to make paltry profits. Adding a 7.5 per cent tax fee to gasoline prices may be deemed superfluous and excessive, in light of the hefty tax fee the government was already collecting before the advent of VAT.
KEVIN EVANS
Freeport,
Grand Bahama
January 6, 2015.
Comments
Sickened 9 years, 10 months ago
Well said! But, as we all know, our successive governments are very greedy and their collective pockets are still not fully lined yet. They still need several hundreds of millions more before they are prepared to retire. As a twist on Mr. Bodie's usual ending... To the corrupt be the glory.
duppyVAT 9 years, 10 months ago
Is gasoline a bread basket item???????????? It would not be an issue if the government had put in place an efficient, safe and cost-effective public transport system to serve the urban districts 24/7........ just more talk
asiseeit 9 years, 10 months ago
Just another example of how the Bahamian people are legally robbed by the Government (Bahamian Mafia). What do we get in return for paying these taxes? Not much. Shoddy electric that costs an arm and a leg, crappy roads, no safety, dirty water, an environment that is being destroyed daily, low paying jobs, terrible education, corruption, DEBT., Taxation without representation, and the negatives go on. It's better in The Bahamas???????????
duppyVAT 9 years, 10 months ago
Agreed .................. our politicians over the past fifty years have failed to give us value for money. If that is the standard for remuneration, they should be paying us!!!!!!
Alex_Charles 9 years, 10 months ago
why should they give us value for our money when they take the value for themselves? you think they care about you ay?
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