The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Government has been urged to "act like you care" and eliminate import tariffs to allow Bahamas-based clothing and apparel retailers to survive.

Robert Myers, the Organisation for Responsible Governance (ORG), told Tribune Business that high duty rates, combined with smuggling and ever-increasing competition from online rivals, were threatening to "destroy the model" for this retail segment.

Arguing that tax policy was effectively exporting Bahamian retail jobs overseas, Mr Myers said this week's warning from the Bahamas' chief World Trade Organisation (WTO) negotiator that the Government can no longer protect such sectors was effectively an 'upside down' explanation for the industry's problems.

Raymond Winder had told Tribune Business that the Government could no longer use high tariffs, laws, regulations and other trade barriers to protect Bahamian retail from online and foreign competition, but Mr Myers said it was these same high tariffs that have made the sector uncompetitive. "I'll preface this by saying I haven't done any research, but from gut reaction we should eliminate the duty on clothing and apparel because they're destroying the retail model," he told Tribune Business.

"These are good paying jobs Bahamians could have, but we're giving these jobs away to foreigners. People are also smuggling clothing and apparel into the Bahamas, and there's nothing we can do about that.

"Let's accept it and support the retail industry. We might lose duty revenues, but there are decent paying jobs and the like. Don't deliberate over this for six months. Get on with it. Just do it. We all know the industry is under threat globally. Just help the sector out, and create some opportunities and employment."

Mr Myers suggested the Customs revenues given up could be made up from the extra Value-Added Tax (VAT) created by increased retail sales activity and employment.

"Would you rather put all the retailers out of business and make nothing, or make 7.5 per cent and keep them in business?" he asked. "We shouldn't debate this for the next 18 months. We should enact that tomorrow.

"That's what a government business-minded and business friendly is about. Let's get on with it and make that change tomorrow. That's when you're going to gain consumer and business confidence. Act like you care."

Responding to Mr Winder's comments, Mr Myers said it was the exact same protectionist measures he referred to - which could be eliminated under WTO - that were making Bahamian retailers and other sectors uncompetitive.

"It is the Government's high costs and poor ease of doing business that is the largest cost factor to the Bahamian private sector's global competitiveness," Mr Myers argued.

"Make no mistake: In the end, it is each and every Bahamian that pays for all of the taxes, Customs duties, tariffs, fees, costs and inefficiencies of the Government and its monopolistic enterprises and bloated ministries. When citizens go about their daily lives, these costs are assessed and added to every aspect of the goods and services we buy.

"Businesses are but a vessel for the collection of the Government's elaborate taxes and fees. If the cost of doing business increases due to poor leadership, management and operations of a bloated, inefficient government, then we all pay higher electrical costs, water costs, labour burden, property tax, licensing fees, interest on loans, Customs duties etc.. All of these taxes and fees are passed on to the consumer by way of a cost and overhead mark up by businesses."