Dion Foulkes, Minister of Labour. Photo: Lionel Smith
By RICARDO WELLS
Tribune Staff Reporter
rwells@tribunemedia.net
WITH the government's new tax model for gaming house operators taking effect yesterday, Labour Minister Dion Foulkes over the weekend continued to plead with those operators that have threatened to lay off workers as a result, calling on them to be patient.
Addressing the current projections being put forth by those operators, Mr Foulkes on Saturday said the government "continues to be serious" about averting a potential labour crisis.
Mr Foulkes insisted the sliding tax scale was only considered and introduced following an "intense review" of the sector.
He added that while those in the industry may feel targeted, the country's overall financial landscape calls for "all involved" to do their part.
"These are unique economic times and the measures this government is taking reflects that," he told The Tribune. "I want to urge all the web shop owners to be patient and not act prematurely in letting go any of their employees before allowing the new tax model a chance to work."
He continued: "That is why I continue to publicly commend (FML CEO) Craig Flowers for his stance. He decided to wait it out and see how this model works. The other web shop owners can do the same thing.
"At the end of the day, the FNM government wants to protect jobs.
"We are in dialogue with most of the owners, I don't want to go any further with that, but we are looking to keep loses at a minimum in the industry," Mr Foulkes said.
"I don't want to comment on the merits of anyone's actions or the moves of any one particular company, you've heard their statements and as the minister with responsibility for labour, my view is to keep Bahamians who are employed, on their jobs.
"That is what I am attempting to do here. That is my mandate," he added.
On May 30, the government announced that web shops will pay a 20 per cent tax on up to $20m of their revenue, a 25 per cent tax on between $20m and $40m of their revenue, a 30 per cent tax on between $40m and $60m of their revenue, a 35 per cent tax on between $60m and $80m of their revenue, a 40 per cent tax on between $80m and $100m of their revenue and 50 per cent on revenue above $100m.
The government has also proposed taxing gaming patrons through a five percent stamp tax applied on deposits and any non-online games or digital sales.
The announcement was immediately opposed by several gaming operators. Many of the operators suggested the measures could lead to large shortfalls within the industry and as such, announced planned staff cuts to offset the projected losses.
A consultant's report previously commissioned by the Bahamas Gaming Operators Association (BGOA), the industry body, forecast that around 2,000 jobs and 192 web shop locations would be lost if the Minnis administration went through with tax hikes it branded as "expropriation" and an attempt to seize control of the sector under the guise of taxation.
ASure Win web shop said it would have closed 11 sites and terminate about 50 workers by the end of June.
Island Luck further warned that 350 of its employees could be sent to the unemployment line.
Paradise Games had also foreshadowed the same action, although the company did not revealed the number of cuts it was considering.
Comments
BahamasForBahamians 6 years, 4 months ago
Don't raise taxes then, idiot.
ThisIsOurs 6 years, 4 months ago
This can't be happening. They say they're raising taxes, business tells them if you raise taxes we have to cut costs, they raise taxes anyway, business starts cutting costs, they beg business not to cut costs
BahamasForBahamians 6 years, 4 months ago
You just can't make this shit up...This FNM cabinet is hilarious.
Alex_Charles 6 years, 4 months ago
Tsk tsk. You knew this would have been within their playbook and you're all surprized? Deal with he consequences.
Actually, shut all they ass down, we voted no, but this ain't a country that cares about what the people want so... get over it.
watcher 6 years, 4 months ago
Using Minister Foulkes' logic, if a company in any other country decides it must relocate its factories due to high local costs and taxes, the Government of that country should ask the company not to let go its workers? Will we ever get a Minister (of any government) who knows the subject of his / her portfolio......All Mr Foulkes is doing is showing how naive and uneducated he is about financial matters in general, and the effect of higher taxes specifically.
John 6 years, 4 months ago
Is this the same government that was firing people left, right and center for the past 13 months? So let’s not lead by example then.
screwedbahamian 6 years, 4 months ago
SERIOUSLY!!!!. What on earth do these people discuss at Cabinet Meetings. Did not the Finance Minister address the Cabinet Members with the governments empirical data on the Web shops $500 million income per year, the recommended new tax structure, the anticipated response from the Web shop cartel and how they would use employment layoff against the governments decisions. The PM and his Cabinet must realize that every decision that is made by the government is a potential trial and like any good lawyer all of the cabinet ministers must be prepared for defend it at all times. Apparently this Cabinet minister was absent on the day of presentation or was present but not allowed to ask questions or make statement on how it would affect his ministry. These statement of begging the destructive Web shop Cartel for favors for his ministry, shows a lack of cohesiveness within the Governments current Cabinet.
ThisIsOurs 6 years, 4 months ago
Actually what you described so well is "economics". Relationships between monetary decisions and the reaction in the market.
The_Oracle 6 years, 4 months ago
A battle of wills between the Devils and the devils they created! Ironic it is.
bogart 6 years, 4 months ago
DA CHICKENS HAV COME HOME....
ALL DESE YEARS ...PORE MAN CRRYING....AGAINST BANKING PRACTICES........NO DAMN LAW ON ANTI COMPETITION.....!!!!!!.......NO ANTI TRUST pore people just suck it in......govt needs to look in rules on anti competition.....all da causes...results.... ironic some 2,500 govt workers gets let go costing just over 10million annually an da inyerest on money losing Bahamas air is same 10 million dollats no fuss but if as the web shops say its business to let go a few hundred workers from an enterprise people voted against....taking out from taxpaying people more than it puts in to be profitable....an govt concerned then.....priorities wrong 2,500 vs 300.??...market forces???
DDK 6 years, 4 months ago
What pure and utter nonsense! Such confusing messages. I guess Mr. Foulkes is trying to play "Politics".
sealice 6 years, 4 months ago
the number houses supposed to be illegal but don't fire your staff..... please fool
Truism 6 years, 4 months ago
We said no to the regulating of web shops and we said no to a national lottery. The former minister with responsibility for gaming didn't do his job, hopefully the current one will.
Sign in to comment
OpenID