The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) yesterday pledged to continue lobbying the Governent for changes to the Business License regime and fee structure by 2016, its chief executive suggesting this could be considered a “trade-off” given the private sector’s role in Value-Added Tax (VAT) administration.

Edison Sumner, who is also co-chair of the Government-appointed VAT Education Task Force, said the BCCEC has concerns about Business License fees as they currently exist, particularly as it relates to smaller businesses.

“One of the things we are going to be doing is advocating with the Government to try and get the Business License regime and the fees revisited, hopefully this year, so that they can be added in time for renewal in 2016,” Mr Sumner said.

“Government is gearing up towards the Budget and we are hoping to make some interventions between now and then for the Government to reconsider their Business License fee, particularly now that VAT has been implemented.

“Businesses  are required to essentially administer this tax on behalf of the Government. Consider it a trade-off. Since we collect the taxes for the Government, then give us the opportunity to have a discussion with you to reconsider the Business License fees as they currently exist.”

Mr Sumner added that the BCCEC wants the Government to lower the rate for Business License fees, and reassess how they are calculated.

“The Government said they would reconsider the Business License fees depending on how VAT is rolled out,” he explained. “Indications are that they are on target. Even though it’s still early it appears as though they’re on target with their objectives for raising VAT revenue.

“If that is in fact going to be the case, the Government said they would revisit the Business License issue. We’re saying to them don’t forget that, make sure that that happens, and make sure that those who have responsibility for Business License renewals in the office of Finance revisit this, but do it in time so that if there are any adjustments to be made they can be done in time for 2016.”

Mr Sumner said: “It’s one of those things that if you  want to generate the confidence of  the business community, then work with us to get this done. We have worked well with the Government, I think, hand in glove to ensure that there was a smooth implementation  of VAT.

“We’re now asking the Government to give the private sector some consideration here and let us consider how we are going to go forward with the Business License fees.”

The Ministry of Finance’s financial secretary, John Rolle, said yesterday that at present there is no “wholesale review” of the Business License regime being considered.

“There isn’t from the Ministry of Finance side,” he added. “There isn’t under development any wholesale review of Business Licenses at this time, which is not to say that the options that will be available to the Government won’t increase in the future, but I think immediately there is still an amount of growth and learning about how the VAT is going to perform, and that will probably determine how quickly the Government assesses some of these other revenue measures.”

Mr Rolle added: “What is very encouraging is that there has been  some increase in the number of business that are now licensed for the first time. Some of them may have been just professional practitioners who did not operate under the constraint of needing  a Business License, but need it now as a requirement when they went through the VAT process.

“We do have more businesses licensed than before. A lot more of the smaller businesses than before. More small businesses licensed does not necessarily  generate into the same level of revenue impact, but to improve the base in terms of overall compliance, and that is what’s important.

“At some point, we in the Ministry of Finance believe that the flexibility the Government will have to review Business Licenses will increase, but it needs to be considered in the context of allowing the experience with VAT  to settle a bit more.”