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Govt considers a hurricane tax

A resident of Adelaide talks with Prime Minister Perry Christie and Urban Renewal Co-Chair Cynthia ‘Mother’ Pratt during a walkabout yesterday to view damage caused by Hurricane Matthew. 
Photo: Shawn Hanna/Tribune staff

A resident of Adelaide talks with Prime Minister Perry Christie and Urban Renewal Co-Chair Cynthia ‘Mother’ Pratt during a walkabout yesterday to view damage caused by Hurricane Matthew. Photo: Shawn Hanna/Tribune staff

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

WHEN it meets today, Cabinet may consider introducing and implementing a special tax to help finance Hurricane Matthew repair and recovery efforts, Prime Minister Perry Christie said yesterday.

If implemented, such a tax may be imposed in a way that has a “minimal impact on people,” he added.

His statement came as he and other government officials toured areas in New Providence that were hard hit by the storm, many of which remain without power and will continue to do so for some time because of the floods they suffered.

Mr Christie said: “We have to give serious consideration to a more effective way of financing the loss that the country has experienced because we’re also paying now for Hurricane Joaquin and it may well be that we have to give consideration to a selective approach to raising money by taxing some item that would be of minimal impact on people. But it’s a matter we have to look at because it’s an enormous challenge to the country. We’ve been faced with downgrading. This is not an easy situation. We thought the way was clear with Baha Mar. But now we have Hurricane Matthew.”

Mr Christie previously talked about the government’s intention to create a $150 million Hurricane Reconstruction Bond that would assist people, as well as small and medium sized businesses impacted by the hurricane and to help accelerate reconstruction efforts.

“The options to a government is to initially find the money as quickly as possible even knowing it wouldn’t be enough,” he said yesterday.

Mr Christie also announced that Urban Renewal 2.0 will be expanded to strengthen recovery efforts.

Currently existing in only 11 constituencies, the programme will expand to the other constituencies in New Providence to help authorities gain command of the issues affecting residents and to provide fast response to their needs.

Mr Christie said: “Because Urban Renewal is only in 11 areas this means we have to create new entities, whole new bodies of people led by the police force to ensure accountability, fairness and that we reach the people we want to reach.

“As these teams go out, they will be expanded on the basis of needs and will be reporting to each of the Members of Parliament and to the country and will be reporting on the basis of what they find with immediate effect,” he continued.

“Out of courtesy to Members of Parliament, we want them to see who the police officers are, choose them so to speak so that no one could feel we’re imposing things on them. The idea is to have a team constituted with a leader, a police officer, social workers, an environmental health worker and whatever else we need and an MP would be able to recommend someone on that team so that he has the total confidence in what is taking place. What we expect is to have the necessary information that would enable us not to miss anyone and not to miss people who are truly challenged.”

Mr Christie, joined by Hurricane ‘Czar’ Shane Gibson, Southern Shores MP Kenred Dorsett, Golden Isles MP Michael Halkitis, NEMA Director Captain Stephen Russell and other officials, toured areas as residents often told him harrowing stories about what happened when they remained home in coastal areas during the storm.

The consensus among those residents was that they would obey future evacuation warnings, even as the government now moves to make such evacuations mandatory.

As clean up efforts continue, residents said they are eager for electricity to be restored in their areas.

For many in the southern areas, this means that on top of having Bahamas Power and Light (BPL) fix broken poles and deal with downed lines, a certified electrician will have to verify when their home can have its electricity restored.

Comments

Well_mudda_take_sic 8 years, 2 months ago

IF CHRISTIE WANTS TO TAX SOMEONE FOR HIS CORRUPT GOVERNMENT'S FAILURE TO FUND AND MAINTAIN A GOVERNMENT SELF-INSURED HURRICANE RELIEF FUND, THEN THE BAHAMIAN PEOPLE SUGGEST HE PLACE A SPECIAL 20% TAX ON THE ANNUAL GROSS REVENUES OF HIS GAMING WEB SHOP FRIENDS FOR EACH OF THE NEXT THREE YEARS. ANY DAY NOW WE EXPECT THE LIKES OF CRAIG FLOWERS AND SEBAS BASTIAN TO ANNOUNCE TOKEN DONATIONS OF A FEW HUNDRED THOUSAND DOLLARS TO THE RELIEF EFFORT WHEN THEY CAN AFFORD, AND RIGHTFULLY SHOULD BE MADE TO PAY, MILLIONS OF DOLLARS FROM THE MANY MANY MILLIONS OF DOLLARS THEY TAKE OUT OF OUR COMMUNITIES EACH AND EVERY YEAR!

pileit 8 years, 2 months ago

It seems The Tribune takes the term "reporting" completely literally, with few exceptions content is comprised of the vacuous utterings of these one-dimensional politicians. I challenge your reporters to put some time into a proper report, what analogs are there worldwide for a "Hurricane Tax"? What examples of "items" could be taxed, cigarettes, alcohol, gaming? What are the views of professionals in the field, citizenry with the prospect of another ill-defined tax? How would such a tax be pooled, directed, disseminated? Please, these politicians are not polymaths, they are mostly average lawyers, nothing more. Give us substance!

Well_mudda_take_sic 8 years, 2 months ago

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BahamaPundit 8 years, 2 months ago

What happened to all the VAT funds?

Gotoutintime 8 years, 2 months ago

If a "Hurricane" Tax is imposed it will never ever be repealed----The Bahamian people are still paying "War" tax since WW2---Surely they cannot be serious!!

BahamaPundit 8 years, 2 months ago

Why can't anyone in the Government say what happened to our VAT funds? This is beyond ridiculous.

C2B 8 years, 2 months ago

Tax the numbers business. It is a tax on the poor that should be clawed back.

Islandboy242242 8 years, 2 months ago

tippingpoint for the sensible Bahamian Citizenry

sealice 8 years, 2 months ago

bla bla bla crony do dis crony do dat bla bla bla more cronies in more places bla bla bla..... when are we going to get rid of this lying tiefin fool?

Moby69 8 years, 2 months ago

Unless we get rid of this Christie led government, the country will continue to go downhill. Old farts with old ideas! Time to GO!!

bewildered 8 years, 2 months ago

"For a nation to try to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle." Sir Winston Churchill

OMG 8 years, 2 months ago

Great comment and so true

BMW 8 years, 1 month ago

Been trying for 40 years!!!

sheeprunner12 8 years, 2 months ago

Bahamians ...................This is what happens when you have had a corrupt, ill-disciplined government for 50 years ............. We either change our system of government NOW or we are heading down the road of fellow Caribbean, African and Central/South American failed countries .................. our "miracle bubble" has burst and is quickly losing fiscal 'air' and is about to fart and spurt off into economic failure

bewildered 8 years, 2 months ago

our bread and butter - tourism - will be NO MORE!

DDK 8 years, 2 months ago

IT IS ALREADY DWINDLING!

Naughtydread 8 years, 2 months ago

Why must the people always clean up after this incompetent PLP administration!? So I guess the group of cronies finally came to the conclusion that the "REAL" banks (not B.O.B) weren't going to accept that ridiculous hurricane bond. WAKE UP BAHAMIANS, THE GOVERNMENT IS MANAGING YOUR PUBLIC FUNDS LIKE A BUNCH OF PRETEENS WITH DADDY'S TRUST FUND MONEY.

DDK 8 years, 2 months ago

IT MUST HAVE BEEN A GOOD ONE!

viewersmatters 8 years, 2 months ago

The PM must be smells his ass twice!!! What much more do they want from the poor man aren't they taking more than enough from us now why don't the PM and his hoggish millionaire ministers not aid all areas impacted by hurricane they have millions sitting in their bank accounts all over the world being idle....peace sake leave the poor man alone we don't have anything else to give damnit!!!!!!! Maybe if the PM wasn't taxing the poor man so much home owners could afford home insurance and it's not our fault that the PM bad leadership and governance have cause our beloved country to get downgrade and a possible chance of a next downgrade, while patriot Bahamians are doing all we can to keep the Bahamas a place to call home the PM and his ministers doesn't give a damn on what they're doing to the beautiful islands of the Bahamas they just concern about benefiting the selected few!!!!

John 8 years, 2 months ago

The man is losing his mind, he is a mental retard. He is delusional, out of touch with reality, economically uninformed, crazy financially, lost and clueless and needs at least 12 weeks complete bed rest (and respirdol treatment) in a secured, well secured,albeit mental institution. Whoever is advising home is equally asinine. They must not have toured this country and saw the damage of the last two hurricanes aye. People have no light, no water, no clothes, no roof, no vehicles 🚗 nowhere to call home. Chil out of school and grandma need medication and the best solution you and your overpaid clowns could come up with is "we gatta tax them more ". Go tax ya Bah Mar ...real talk

ThisIsOurs 8 years, 2 months ago

Is he serious??? Which people does he think it won't have an effect on? Some people have damaged homes, some have business crippled with no power and some people are laid off cuz their employers have to close temporarily, anyone who says "it's too early to talk politics" is a fool. It's too late they're already proposing bonehead policies, hurricane tax, UR and Shane Gibson.

ThisIsOurs 8 years, 2 months ago

What is most troubling to me is the PM has yet to indicate how they will adjust the current spending???????

Honestman 8 years, 2 months ago

If implemented, such a tax may be imposed in a way that has a “minimal impact on people,” he added.

If it is to have minimal impact on people then why bother ???

observer2 8 years, 2 months ago

Honestman, "minimal impact on people" is a coded message/dog whistle meaning that the PLP will tax businesses. This can be done by increases in business license fees, employer NI tax rates etc. However, these will be too slow to raise funds.

I feel they will increase the VAT rate from 7.5% to 10.0% and say that the difference will go towards hurricane relief. Then the funds will be posted to the General Fund like the VAT and gambling taxes and will be buried in abuse to fund BoB, Resolve, Bamsi, BEC, Water and Sewerage, BahamasAir, lavish trips to China and NY for PLP cronies, the bloated governement payrol and many other government entities which should all be closed down and let private businesses perform these services.

ThisIsOurs 8 years, 2 months ago

That's funny, if he raises taxes on businesses what does he think will happen other than layoffs and higher prices for consumers?

OMG 8 years, 2 months ago

Unbelievable that the PM can add more taxes to an overtaxed public and sluggish economy. We have suffered a whole raft of taxes in addition to VAT and import duty including tyre disposal tax, Customs processing fees, increased departure tax to $29.50 and the list goes on. Any responsible government would cut expenditure andput aside 10-15 every year to help with these natural disasters. Look at VAT, not only used up but more borrowed on top. Start with all the re-hires who not only collect pensions but another salary-Baltron Bethel, BUT presidents who inevitably get a job in the MOE as advisors, then cut out Fred Mitchells travelling.

g9822033 8 years, 2 months ago

This government has made so many bad decisions that defy common sense unless the interests of the decision makers are being put before those of the people.

We need to rebuild our infrastructure but the people are already suffering from a weak economy, low wage inflation, increased cost of living (VAT) and now a hurricane. To layer another tax of any type will break a lot of people.

Instead of adding a tax, maybe the government should consider repealing any tax breaks it has given.

ThisIsOurs 8 years, 2 months ago

How can he look at these people and even utter the word "tax"?

justthefactsplease 8 years, 2 months ago

He can talk about TAX all he wants but it is up to us, the Bahamian people, to reject any attempt to put additional tax on an already depressed economy. If he tries that sh!t we need to have another Burma Road incident to send a clear message.

Reality_Check 8 years, 2 months ago

Christie likes to hold himself out to be a modern day Robin Hood by letting the poor think he will take from the rich to give to them. But whatever Christie takes from the rich never makes it to the poor......most of it goes straight to his wealthy cronies! Christie's penchant for buying votes any way he can has created a bloated non-productive public sector and a grossly mismanaged and dysfunctional social welfare system in our country, the cost of which is now impossible to sustain.

sheeprunner12 8 years, 2 months ago

To be honest ............. we are a low tax jurisdiction by global standards .......... but the problem is that we do not seem to see or know where our cumulative 20% of tax assets go every year .............. the Consolidated Fund (government account) seems to be a black hole

John 8 years, 2 months ago

Low ta?,You skip Arithmetic class aye..(and maths too?) The average Bahamian is paying close to 50% of his/her income in taxes..supporting the Tourist even, who come here to live on Paradise Island. y'all ainn serious!

sheeprunner12 8 years, 2 months ago

Please elaborate on your arithmetic ........ thank you

sheeprunner12 8 years, 2 months ago

Just stay tuned to the Parliamentary Channel tomorrow to hear utter bullshit from Perry and no response from Minnis again about hurricane restoration and the proposed hurricane tax ........... it is absolutely shameful governance ........ we should not pay them salaries

FINCASTLE 8 years, 2 months ago

A GOOD QUESTION ALREADY ASKED: Where is the VAT $$ It hasn't gone to the national debt. the hospital? no. education no.
Where is the money?

Naughtydread 8 years, 2 months ago

So we got VAT, Gaming Tax, Real property Tax, Duty and yet we need to add another tax!? Our countries government buildings are in shambles, roads have pot holes big enough to sink entire cars, current being generated from diesel generators being run on the cheapest fuel possible yet we need another tax!? These jokers got to be smoking that crack rock. Down right shame.

The_Oracle 8 years, 2 months ago

Until we elect an administration with the guts and moral fortitude to Jail all crooked former politicians and civil servants, we will continue to have this sort of pathetic leadership. Complete and total political mismanagement, micromanagement, coupled with complete erosion of the collective intelligence and ethic within the civil service nets us exactly what we now have: Zero. But they don't care, because they will sit atop the pile whether it is made of gold or dung! Check some Customs officers Bank balances pre and post storm. Check NEMA and Urban Renewals officers bank balances. Check the Carnival Committee bank balances. And check them all for checks written to politicians. And Jail them. They're gonna put the vat to 15% anyway. Minimal impact to people means they're gonna tax rats, dogs and cats must be. Maybe Pigeons.

B_I_D___ 8 years, 2 months ago

Where's Birdie? I want to hear it...but then again I don't...gotta be twisting that little brain trying to come up with justification and praise...

DDK 8 years, 2 months ago

IS THE PM ABSOLUTELY CRAZY? IS THE ONLY WORD HE KNOWS "TAX"? LIKE A CHILD WHO HAS LEARNED THE POWER OF HIS FIRST WORD? GOVERNMENT IS ALREADY KILLING THE BAHAMIAN PEOPLE AND THE TOURIST INDUSTRY WITH TAX. THE MONEY HE AND HIS CRONIES SPEND TRAVELLING ALL OVER THE WORLD IN SIX MONTHS WOULD FEED A SMALL NATION FOR TEN YEARS. THE MAN REALLY HAS TO GO! THESE POLITICIANS HAVE PLUNDERED SO MUCH FROM THE BAHAMIAN PEOPLE THEY HAVE NO IDEA WHAT IT FEELS LIKE TO BE UNABLE TO BUY FOOD, PAY SCHOOL FEES, PAY BEC, PAY RENT OR MORTGAGE, PUT GAS IN THE CAR, ETC. THIS IS WHY THEY DO NOT FEEL THE EFFECT OF "TAX". JUST PILE ON SOME MORE. THEY ALL HAVE TO GO. WHY DON'T THEY EACH DONATE A YEAR'S SALARY TO THE FUND?????

John 8 years, 2 months ago

My final word is go tell Perry Christie to go tax he Bah Mar!

Seaman 8 years, 2 months ago

Let the stupid PLP's start by giving up their salaries as MP's and Ministers. Bahamian people have to be stupid to vote these dumb ass people back in power.

banker 8 years, 2 months ago

ya tink Mudda Sick ... errr Mudda Pratt wants to suck at da public teat again?

TalRussell 8 years, 2 months ago

Comrade Banker, who me I ain't saying nothing of the sort. But it's quite noticeable who straps on their PLP magnets when it's time grab power or dish out public funds? But we all knows what the photo gallery would look like, if we also did one on the other law partner Papa's ghosts from past? And, voters may very well settle for returning the same old broken political system to power come the 2017 General...so why even talk about it?

bahamian242 8 years, 2 months ago

You want to Tax? Well start by Taxing the Chinese, Take a Ways that serve so much RICE! Between them and KFC they are a leading cause of Diabetes here in the Bahamas! Did you see how long the lines were into eateries, after Hurricane Mathew??? $1.00 per plate, or Box! That will be the Hurricane TAX!

PVM 8 years, 2 months ago

Thousands of Years ago our Heavenly Father told us this is what a world loving Goverment will do. Yes, read the account in 1 Sam Ch 8, tomorrow morning God willing on 102.3 FM & REVTV CH 972 at 6 o'clock in the Morning I'll be look at this from a Word of God point viewpoint! Bro Paul.

TalRussell 8 years, 2 months ago

"A Time for Choosing" by Ronald Reagan

...//https://www.youtube.com/watch?v=qXBswFfh6AY

Well_mudda_take_sic 8 years, 2 months ago

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ThisIsOurs 8 years, 2 months ago

People say the last commission of inquiry was a waste of time because no one went to jail. I disagree that it was a waste of time because is shined a light on a lot of extortionists and sent them into their dark holes for years. We need a commission of inquiry, if only so these people never rear their heads again.

sheeprunner12 8 years, 2 months ago

Who (which political party) will have the testicular and moral fortitude to undertake a COI against the Perry-led government in 2017 (given it wins)??

ThisIsOurs 8 years, 2 months ago

I can't say if they have it or not..., but given both the DNA and FNM have indicated that they would, more power to them.

sheeprunner12 8 years, 2 months ago

What happens after the introduction of the hurricane tax?????? .......... did the government learn anything after they introduced VAT??????? ............ NOOOOOOO ........ this government has put VAT on us but has done nothing to streamline public spending, cutting public sector corruption, collecting other government taxes and downsizing government bureaucracy ...... the PLP government is doing the absolute opposite .......... next we will see NIB funds consumed, our dollar devalued and our economy rendered to junk status ........... it is already in a depression by global standards

OMG 8 years, 2 months ago

So another tax which disappears into the consolidated fund to be squandered again. Watching a pious Christied on ZNS tonight almost makes you want to throw up. Notice how he now and only now acknowledges the real risk of a downgrade which any reasonably educated person new is coming.

OMG 8 years, 2 months ago

Wouldn't any sane manager of finances have said cancel Carnival and restore the southern islands ravaged by the last hurricane . but no we go ahead with an event which the laughable excuse that it was never mean't to make a profit. I understand they are still discussing a mini hospital on Eleuthera when the existing clinics are short on supplies and I am reliably informed have one doctor covering a 100 mile long island. When will reality hit home and delay all these expensive projects and provide the basics. Really looking like third world African politics.

SP 8 years, 2 months ago

...... Stamping Out Corruption Will Eliminate The Need For Vat Or Additional Taxation .......

NO MORE TAXES....A change in leadership (not FNM) audit government starting with office of PM, deal with and stamp out corruption, and we will have more money than we know what to do with!

Christie is attempting to change the conversation from Sarkis, Baha Mar, BPL, & his failures in the aftermath of Matthew.

The_Oracle 8 years, 2 months ago

The problem with this particular village idiot, is that he doesn't know he is the village idiot. None of his cronies will point it out, they're too busy profiting by stealing the treasury blind, and selling the country down the Yellow river. The Civil servants won't, most have their little nest egg niches carved out, either by bribery or side jobs and companies. The political Stalwarts won't, they need the crumbs that fall in 5 year cycles. All in all, each and every one of us is responsible, including those in the private sector who pay off, work the corrupt system, kick money back for government contracts, and stay as unnoticeable as possible. God forbid anyone stand for anything.

TorontoGal 8 years, 2 months ago

I recall when the first casino was opened way back in late 60's very early 70's. Bahamians were supposed to avoid ever being taxed because the casino money was to be used to support the islands. Where has this huge bundle of money gone??? Into the pockets of the most corrupt government since Haiti's Papa Doc & Baby Doc. These government officials should be forced out of government, no pension, no severance, no nothing until they pay back every cent they've stolen from their people. I used to think you could not get any worse than Ponder and Kindling. OMG, was I wrong.

People, stand up for yourselves or you will all be living in huts without water and electricity for the rest of your lives!

sheeprunner12 8 years, 2 months ago

What vested interest do you have in our country???????? ...... we have enough local doomsday commenters ........... sour grapes????????

maryann 8 years, 2 months ago

HE has his corrupt Ministers taking our hard earned monies forming made up committees and associations to channel our funds into the wrong hands. No real accountability whatsoever with this administration. These people do not care about Country.

Well_mudda_take_sic 8 years, 2 months ago

Re-post: Crooked Christie is about to start blaming any and everything on the aftermath of Hurricane Matthew as his corrupt government seeks to add $150 million more to our existing unsustainable national debt or introduce a special tax. Any significant increase in our national debt at this time would almost certainly trigger a downgrading of all of our country's debt to "junk bond" status with severe consequences to follow for all Bahamians. Introducing a new special tax would assuredly cause another round of horrific consumer price increases for all Bahamians, and would undoubtedly result in even more marginally viable small and medium size businesses having to close their doors for good. This in turn would greatly increase unemployment to a dangerously high level with obvious implications for more crime in our society. Crooked Christie's failed social and economic policies have already created a grossly mismanaged, very dysfunctional and unsustainable welfare state in which many Bahamians and Haitian-Bahamians have been made dependent on the government for their jobs in exchange for voting the "right way" come general election time. But now even Crooked Christie must face the fact that blood cannot be had from a stone to support his bloated non-productive public sector and the graft and corruption that have unjustly enriched his very greedy chosen few. Honest hardworking Bahamians and the vast majority of Bahamian businesses not owned by Crooked Christie's cronies have had all they can take and stomach. We have reached the fork in the road that all honest hardworking Bahamians had hoped and prayed they (and their children) would never arrive at. If you look at Christie's waistline, it's easy to understand why he thinks he cannot tighten his government's fiscal belt, which is precisely what needs to be done. Crooked Christie should start by scuppering the very costly idea that politicians need to continue flying all over the Bahamas to survey the aftermath of Hurricane Matthew. All of this unnecessary travelling by politicians in the age of digital photos and in the run up to a general election takes on the appearance of campaigning by the political parties at the people's expense rather than at the expense of the parties. Crooked Christie should tell Fred Mitchell and all of his other government officials that travelling first class is not an option for him or them over the next few years....he should also have them cut out attending many of the silly conferences abroad that they attend, often tacking on vacation and shopping time. I can think of $150 million of unnecessary fat (lard of the worst kind) That Crooked Christie has padded into his annual budget for the benefit of his cronies. He needs to take a scalpal to it and cut deep.

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