BEC Chairman Leslie Miller
By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
DESPITE a promise that the Bahamas Electricity Corporation will “absorb” some of the value added tax cost, BEC Executive Chairman Leslie Miller said yesterday it has been decided that customers will pay the full 7.5 per cent.
However, Mr Miller said the cost of electricity has gone down significantly meaning electricity bills will still decrease.
Two weeks ago, Mr Miller told The Tribune that BEC customers will pay no more than five per cent of the new tax and the corporation would absorb the rest.
At that time, Mr Miller said he thought it was “unfair” for customers to pay 7.5 per cent on top of “already high bills”.
Earlier this month, he also said consumers would not see VAT reflected on electricity bills until February, however The Tribune understands VAT billing has been applied to some bills for this month.
Yesterday, he said the government has decided to keep VAT charges on BEC consumption at 7.5 per cent, in line with other countries in the world that have the tax.
“I tried but it was not up to me, it was not my decision. The cost of electricity has gone down about four cents per kilowatt hour and that will show on the bills,” Mr Miller said.
“Just yesterday a woman told me her bill has gone down by $228 since December, so it is showing already. So with the 7.5 per cent it is still cheaper. The minister said the rationale behind leaving it at the original cost of VAT was because that is how it is done in countries with VAT all around the world and they did not want to complicate things.”
Originally, the government proposed to make electricity VAT exempt for both residential and business consumers up to a certain threshold.
However, acting on recommendations of New Zealand VAT experts, the government decided not to exempt electricity.
Last year, Minister of State for Finance Michael Halkitis said it did not mean electricity costs will increase by the VAT rate of 7.5 per cent, nor will the tax wreak havoc on the poor since the government will establish mechanisms to mitigate this.
“We don’t expect (electricity) to go up by the amount of the VAT. As it stands now it might increase a bit, it might stay the same; but definitely if it were exempted then BEC would not have the power to get VAT credits back, so we think bringing it into the net allows them to get their credits and reduce their cost. Our experts told us that being exempt is actually a disadvantage for a lot of services because they don’t have the opportunity to get credit back for VAT that they pay on,” Mr Halkitis said last year.
VAT was introduced on January 1.
Comments
Publius 9 years, 10 months ago
Frankly I fault the Tribune for running Leslie's comments in the first place without any balance, since BEC as a VAT registrant is required by law to charge the 7.5% and since the government made no amendments to the VAT Act to permit BEC to charge less than 7.5%. Just another example of Leslie running off at the mouth talking foolishness that he talks on a regular basis, unchecked.
Cobalt 9 years, 10 months ago
I agree. The Tribune is fast becoming just another tabloid by giving a platform to non-credible idiots like Leslie Miller to voice their stupidity. It seems as if any fool can spew nonsense from their mouth, and the Tribune is quick to display it in black and white.
Publius 9 years, 10 months ago
True. It's a major problem in the media in general in this country. Almost anything someone says into a microphone gets printed or aired with no balance, no context, no fact checking. All everyone wants is column inches, a headline or a soundbyte; true journalism be damned.
DonAnthony 9 years, 10 months ago
The problem lies not with the tribune, I mean for goodness sake Mr. miller is the chairman of the corp. and his words should be accurate and a reflection of the official policy of B.E.C. If he does not speak for B.E.C then who does, so it is news and should be printed. The problem is that that there is no accountability for incompetency nor for accuracy of these statements. In an accountable govt, Mr. miller would have been forced to resign long ago. His position instead of being based on competency and meritocracy is based on political favor, therefore it matters not that his statements have no meaning or accuracy. Until this corp is privatized we will listen ad naseum to this meaningless drivel, while he continues to receive his fat salary for gross incompetence.
Publius 9 years, 10 months ago
VAT is not a BEC law, it is the law of the land. The statement he made was not consistent with the law, that is the point being made here. Further, it is not a journalist's job to assume someone's comments are accurate, it is their job to check that it is. Miller is always talking foolishness, but how often is he checked for it?
DonAnthony 9 years, 10 months ago
Some well run, smart businesses have chosen to cover the vat charge for their customers. Of course this reduces their profit margin, but should increase their sales volume. I presumed this was what Mr. miller was referring to here and that would have been completely legal. B.E.C could have only charged a 5 % vat ( or no vat at all) but forwarded the legally required 7.5% to the treasury. Naturally, it is completely unrealistic for a company that operates at a chronic deficit but it would not be illegal. It simply reinforces the need B.E.C to be privatized as soon as possible.
Greentea 9 years, 10 months ago
Will BEC actually PAY the VAT it is taking from the people? I would like to see THAT check cashed.
pat242 9 years, 10 months ago
It's only a matter or time before V.A.T will be at 15%.
Publius 9 years, 10 months ago
This is true
sansoucireader 9 years, 10 months ago
Just got my water bill yesterday for the last 1/4. In reality, I'm being charged VAT on water from 2013 since we're only 28 days into 2015. These people are killing us!
TalRussell 9 years, 10 months ago
Will foreigners and PLP business owners pay full VAT when due and payable to BEC? Comrade Pot cake Leslie out your own mouth just days ago I heard you 'assure' public that due to the paycheck hardships being experienced by thousands of BEC customers, that it would be unconscionable for BEC, NOT to absorb proton VAT on they electricity bills. Again, you are a Chairman who has yet to deliver on any promise you have made. Pot cake will you now do what any honourable Pot cake would do, and resign not only from BEC, but also from this heartless PLP party? Resign, right AFTER you pay your own damn BEC long overdue due electricity bill. If, the poor MUST pay, so must BEC's delinquent customer Chairman Pot cake Leslie and every other PLP politician and connected pay up. You can only push tolerance natives so far.
"Cry Of The Pot cake" By Phil Stubbs
........//https://www.youtube.com/watch?v=B2ZxW_nJhBk
duppyVAT 9 years, 10 months ago
Thats the $450 Million BEC debt question ........... who is paying BEC bills and tell Leslie to come clean with the "exemption list" for friends, family and lovers
MaLambee 9 years, 10 months ago
If you use your ATM card withdraw money from abroad you will pay VAT also.
ohdrap4 9 years, 10 months ago
the vat is on the banking fees, not on the amou8nt you withdraw.
let's say you withdraw $200.00 and the stamp tax, and central bank fee is $3.50, you pay vat on $3.50.
If you get a cashiers cheque for $300.00, and the bank charges $6.40 for the check, you pay vat on $6.40.
you pay vat on car license and registration too, i think.
USAhelp 9 years, 10 months ago
Gotta pay them high union wages.
The_Oracle 9 years, 10 months ago
You pay 7.5% of the $1 fee the bank charges for local ATM use! 7.5% on all bank services in fact. I question the 7.5% on the fuel surcharge, is that not already taxed not once but twice? Being that it is a "pass thru" cost, no value is added...... Vat is paid on import, along with the other compounded taxes.
Greentea 9 years, 10 months ago
i was wondering the same thing Oracle- Since the surcharge is more than twice the actual usage bill- I imagine they will try to double tax it anyway- mo money.
John 9 years, 10 months ago
They all need to resign. If something doesn't break this country will see another 6,000 people living below the poverty line by years end!
asiseeit 9 years, 10 months ago
So they are going to tax us on the fuel surcharge. Double dipping at it's finest. Taxation without representation. The best part of the whole thing is they are NOT going to pay off our debt, they are just going to spend, spend, spend. Your kids and grand kids face a dismal future!
Publius 9 years, 10 months ago
Yes
Cobalt 9 years, 10 months ago
Not my kids! We just got our green cards yesterday! We're gettin the hell outta here!!
asiseeit 9 years, 10 months ago
One of many. The amount of people I know who either say they are actively looking into or in the process of moving is out of control.
TheMadHatter 9 years, 10 months ago
I was in a restaurant today and I am not joking or making this up - FOUR freaking women walked in (they were together in a group) and they each had a baby in their arms about the same age (less than a year old). FOUR !!!!!!!!!!
I just said to myself, man these people can't be shopping at the same grocery store I shop at. The sloops have got to be smuggling them in duty free food.
Wonder how expensive life has to get before people think twice about having kids? Apparently things are simply not expensive enough yet. Maybe when VAT gets raised up to 18%? Maybe not even then.
TheMadHatter
The_Oracle 9 years, 10 months ago
The priority our Government, either party, is their own stasis, or preserving their positions and lifestyles. The wealthy care not which party of thieves is pillaging the treasury, they only care about preserving their wealth. The politicians want to be king of the hill no matter if made of gold or dung. Ours is turning to dung rapidly.
proudloudandfnm 9 years, 10 months ago
Hey!! I have an idea. Make utilities VAT exempt. Meaning they don't collect or pay it...
What's the big damned deal morons?
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