Dr Duane Sands, Minister of Health. Photo: Shawn Hanna/Tribune Staff
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By AVA TURNQUEST
Tribune Chief Reporter
aturnquest@tribunemedia.net
HEALTH Minister Dr Duane Sands has promised more healthy changes are on the horizon for the breadbasket list - after wide public consultation.
Dr Sands underscored the Minnis administration's commitment to fully vetting proposed changes, adding they will not require any amendments to the regulations of the value added tax law.
He was responding to intense criticisms from consumers that there are no healthy options on the zero-rated list.
"Those are two separate policy decisions," he said.
"One (increase in VAT rate) has a legislative requirement - you have to bring an act to amend the regulations of the VAT bill, the VAT 2018 regulations," he said, "and because we have not completed the conversation or consultation then we have to go with the existing breadbasket with that amendment. Changing the breadbasket requires that we gazette the changes and does not require a bill or act of Parliament."
Dr Sands continued: "We haven't made it to Exuma, Eleuthera, Grand Bahama, we haven't made it to Abaco. We made a commitment we would talk with people. At this point. there was overwhelming consensus that sugar had to go, so we started with that. I believe the pushback against corned beef was so great we decided we let it have a bye."
It was announced last week that as of August 1, VAT will be removed from all breadbasket items, except sugar, which will be taken off the breadbasket list.
This means VAT will not be applied to butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, bread, tomato paste, baby cereal, baby formula, soup, broths, baby food, powdered detergents, condensed milk, soaps, fresh milk and mustard. The overall VAT rate will increase from 7.5 percent to 12 percent as of July 1.
In February, Dr Sands told Tribune Business the Minnis administration was set on totally changing the government's breadbasket food line-up in time for the 2018-2019 budget year.
He said the government would align tax and economic policies with the Bahamas' dietary health needs for the first time since the 1970s.
Dr Sands further said, at the time, the concept of "giving people a bellyful" through imposing price controls on basic food staples had contributed directly to The Bahamas' health crisis, particularly its struggles with non-communicable diseases.
On Monday, Dr Sands said: "In terms of addition of fruit and vegetables, and various other items, you have to look at the impact both at the wholesale level, retail level, and on the revenue side. So all of these policies have revenue implications and even though those revenue implications pale when you look at long term health implications, they still have short term revenue implications. There is a lot of things we'd like to do right now.
"But this (VAT rate increase) is what we believe is the right thing for the people of The Bahamas right now. It's bitter medicine but we all have to take it."
In his defence of the VAT increase, Dr Sands said: "It is a regressive tax, and what we sought to do is simultaneously put some progressive changes in there. When you talk about eliminating tuition at BTVI - huge savings for the poor. VAT off breadbasket items and medicine - huge savings for the poor. If you look at the net, what will probably happen for the poorest is that this budget is neutral in terms of their net taxation, and that is what we were seeking to do.
"We sought to have a progressive net-impact," he continued, "so the goal was using an approach which is reasonably doable and offset it for the least among us, like the over-the-hill redevelopment initiative tax breaks.
"You can't take it all in isolation - look at what the net picture is. Fundamentally, when you see all these various things eliminating duty on new vehicles, increasing exemption for people traveling, if you were to now look at the poorest 75-100,000 people and look at their tax bill in 2017 and tax bill in 2018 - I put it to you that it's probably unchanged, that's the intent."
Comments
birdiestrachan 6 years, 6 months ago
Do. Sands I hope does not believe his own lies. The rich buy bread basket items and the poor buy bread basket items. The increases on other items far out weigh the decrease in bread basket items. I suppose he believes poor people can afford new cars and planes and helicopters. Gas bills will increase, cable bills, electricity and every thing else. but the doctor know that the peoples time voters believe his lies so he continues to tell them with no shame. . doc persons. who know better are saying it is a bad idea this increase in VAT and you all just continue to lie and justify the wrong and the pain inflicted on the poor and middle class Bahamians. Your leader has now become a savior and he will save the Bahamas. From what??
DDK 6 years, 6 months ago
Many Government supporters are horrified by this VAT increase! There is very little support for it except by the elite for whom money is no object. The People should not have to pay for past Governments' (FNM and PLP) corruption and inefficiency.
DonAnthony 6 years, 6 months ago
When will we finally get healthier options in the breadbasket items? How many years to make a decision? This is really pathetic for a doctor to be the minister in charge and take so long to implement obvious healthy changes. Meanwhile of over 190 countries in the world the Bahamas is in the top ten for obesity for both men and women. Everywhere you look hulking masses of fat Bahamians who can barely walk. Even primary school children. Just lumbering masses of redundant protoplasm. Ambling fire hazards due to incendiary thighs constantly rubbing together. They must use a lot of talcum powder to ease the friction.
Because of our unhealthy diet diabetes is an epidemic and getting worse. Our life expectancy will soon begin to decline because of PREVENTABLE chronic diseases. Fix the DAMN breadbasket and include all vegetables, nuts and fish like Tomorrow!
ohdrap4 6 years, 6 months ago
the price controls will go with WTO folks.
The only relief will be no VAT.
You cannot put perishable refrigerated items ion the list because it costs too much to store them so the foodstores will just not bring it.
did you notice that condensed milk stayed on the list? WHY? because ti does not need refrigeration even after it is open. Unlike evaporated milk.
proudloudandfnm 6 years, 6 months ago
How about we get rid of duty? Then we wouldn't need a bread basket list.
JohnDoes 6 years, 6 months ago
Where is the oats, porridge, sardine, tuna, honey etc? Cant forget the toothpaste and mouthwash & floss because the poor peoples mouths will now be stinker & more septic than before. There should be a lot more things added to this list yet the infectious corned-beef prevails, the same meat that has been failing quality inspections, the only form of protein on the list?
ohdrap4 6 years, 6 months ago
apparently they added canned fish back.
i cant recall that toothpaste was included before.
you will have to wash your mouth with soap.
Well_mudda_take_sic 6 years, 6 months ago
And so the disingenuous efforts to back-peddle begin. The more important question is: How could Minnis and Turnquest have failed to consult with anyone, including Dr. Sands and many other FNM MPs and all PLP MPs, before announcing their proposal to inflict such a humongous hike in VAT on the Bahamian people and an already struggling private business sector other than the extremely lucrative criminal enterprises run by the numbers bosses?!
DDK 6 years, 6 months ago
"On Monday, Dr Sands said: "In terms of addition of fruit and vegetables, and various other items, you have to look at the impact both at the wholesale level, retail level, and on the revenue side. So all of these policies have revenue implications and even though those revenue implications pale when you look at long term health implications, they still have short term revenue implications. There is a lot of things we'd like to do right now."
Does that actually MEAN something? They are so FULL OF IT!!
hrysippus 6 years, 6 months ago
The duty free price controlled bread basket items were introduced by the UBP government before the so called majority rule. The idea was to provide staples at the lowest cost to the poor. As happens with most everything our governments have attempted it went horribly wrong and we have ended up with one of the most obese nations in the world. We are what we eat .
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