PLP leader Philip 'Brave' Davis.
By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemeduia.net
AS HE urged the government to revisit the proposed tax sliding scale for web shops, Opposition Leader Philip "Brave" Davis said increasing taxes on gaming house operators provides the incentive for the numbers business to return to the "underground".
Mr Davis said Bahamians are also concerned about the proposed five per cent stamp duty to be charged on deposits and winnings of web shop users beginning July 1.
He said with banking services dwindling in the family islands, residents are concerned about receiving and sending money to relatives to aid in providing necessities.
Web shops were legalised and regulated under the former Christie administration despite Bahamians voting no during the gaming referendum in 2013.
"In light of the tax structure assessed in every other industry, what could be the possible rationale for the 350 per cent tax hike on web shops other than to drive them out of business and place more than 3,000 Bahamian jobs at risk," Mr Davis said yesterday during a press conference.
"Another collateral damage to the financial services industry from this harmful tax policy is the fall away of the smaller gaming houses and the creation of a possible gaming monopoly. I don't believe in the circumstances that the smaller gaming operators will go quietly into the good night.
"They might very well decide to return to the underground informal economy, which takes the sector back to the undesirable pre regulatory era. Fifty per cent tax is an incentive for new entrants to enter the informal gaming industry."
"The PLP government worked hard and long to regularise this industry and make it compliant with the requirements of the OECD, FATF CFATF FAF and the US state department. All those F's to ensure that we preserve our financial services industry.
"I point out that the unregulated gaming industry was mentioned in US state department's annual report on the Bahamas for its vulnerability to the proceeds of crime. We call on the government to revisit this tax hike in regard to the reputational damage and possible black listing," he continued.
According to Finance Minister K Peter Turnquest last week during his budget communication, the government plans to increasing taxation on gaming house activities with the introduction of a sliding scale of rates applied to taxable revenue next month.
"To facilitate this," he told parliamentarians during the 2018/2019 Budget Communication, "we are proposing a number of measures that are designed to generate additional revenue to the government.
"Specifically, we are increasing the taxation of gaming house activities through the introduction of a sliding scale of rates applied to taxable revenue, namely: up to $20m, a rate of 20 percent; between $20m and $40m, a rate of 25 percent; between $40m and $60m, a rate of 30 percent; between $60m and $80m, a rate of 35 percent; between $80m and $100m, a rate of 40per cent; and over $100m, a rate of 50 percent.
"Also, the taxation of gaming patrons through a five percent stamp tax to be levied on both deposits made by patrons at the gaming houses and any non-online games/digital sales..."
Comments
DDK 6 years, 5 months ago
This greedy man is worried about the money already in the unlikely event his party gets back in power, although I must say, Minnis those seem to think they (FNM) will survive. Perhaps they do intend to reduce the VAT increase after their "three-year" plan has had its desired effect - just in time for The People who manage to survive to forgive them for the pain.
TalRussell 6 years, 5 months ago
Where is da authenticity when it looks likes things gone completely out whack Imperial Red Shirts group 35.... and here comes Comrade "Brave," who was in da number 2 leader position to long have surrendered authority over Numbers Man's. {Why make up such political leadership hypocrisy }. You can see why it may take quiet spring real peoples It's the Peoples time revolution to begin hard/smart work required brungs real change ways we elect we governing man's and woman's. But less than 4 years start to get organized tell both colours t-shirts to F--- Off,
birdiestrachan 6 years, 5 months ago
Flowers is all over the place saying he put the PLP out of office.
Gotoutintime 6 years, 5 months ago
What's the alternative in four years time?---We either put the FNM back in or we try the PLP again---Things will not change in this millennium!
Economist 6 years, 5 months ago
The Gaming won't go underground. These guys are finally legit and are on everyone's radar. They will police the industry themselves to make sure no one else gets in the game illegally.
observer2 6 years, 5 months ago
The regulated gaming industry won't go underground but Brave unfortunately does have a point. If the tax is too high then it spawn a lucrative unregulated industry.
The barriers to entry to the numbers business is low. A cloud server running the numbers coupled will a Cell Phone App is all that's needed for an entrepreneurial young person to get started. Without the taxes and regulations their payouts will be higher.
Also, with regulated banks closing down branches everyday Gaming patrons will soon move to electronic wallets once they see how easy it is to set up without the need of a bank account or exchange control approval or standing in any line anywhere in the Bahamas waiting for the government, the banks or the webshops to piss you off.
I think patrons will hate having to give the government 5% of their wager and then another 5% of the spinning winnings.
Also with 50% taxes the payouts are gonna get pretty lousy even for the most addicted gamblers.
Once the numbers business goes global and in the cloud then the patron will be free of the government's heavy taxes, reglations, the inability to transfer your winnings, the bahamas and listening to the webshop owners crying all day every day and they will be able to play numbers in peace with great returns.
Webshops are like a hydra, the more you try to control and regulate it in a corrupt society the more tenticals it grows. The peoples voice through the referendum should have been heeded in the first place.
DDK 6 years, 5 months ago
............ and what happens when these electronic gamblers' credit cards dry up?
The_Oracle 6 years, 5 months ago
Aught to be driven back underground from whence they came. Strip 'em of assets first. Put it to the national debt. 12% VAT is a joke to what these parasites suck out of poor Bahamians pockets and the economy.
TalRussell 6 years, 5 months ago
Naive ma comrades thinks spawn that lucrative unregulated numbers industry does not already operate raking in millions wagers dollars? There are a total of seven master numbers licensed issued with two being defunct.
sheeprunner12 6 years, 5 months ago
DPM Peter Turnquest just stated that the Numbers Cartel earn on average $30-40 million in profits per year ........ $30million x 8 houses???? ....... $240million X 25% tax = $60million on the low end ......... That is TWICE the tax that the gaming industry presently pays.
hrysippus 6 years, 5 months ago
Why do plp leaders mislead so easily? There is a huge difference between a grubby piece of paper with some random numbers written on it carried in the pocket of a nondescript citizen and a database on a webshop compute which has recorded every detail of every transaction and every id of every customer. Easy to build a case that will hold up in court. Does everyone remember chief of police Elliston greenslade announcing publicly that he would close the illegal numbers houses within two weeks? I guess he got too busy preparing to be the Bahamas's ambassador to the court of St James in the UK. What hope does a country have when the chief of police lies so publicly and is the honoured with a high post?
Well_mudda_take_sic 6 years, 5 months ago
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DDK 6 years, 5 months ago
Simple, Mudda, simple! Unless, of course, it requires too much brain drain for our esteemed leaders!
bogart 6 years, 5 months ago
There is no place in Nassau which can be said to be underground....everyplace is know by many.....every general and dere MP ...done knows where every voter is....and what who does what..who is working and how many voters in yor house...where every business is...every shantytown....outside toilet....
jackbnimble 6 years, 5 months ago
Davis knows what the play is because he and his corrupt PLP party allowed themselves to be bought by Nygard and the Numbers Boys. Small wonder their short stint in power was marred by corruption. It started prior to election. The only thing they didnt count on was that the Bahamian people would see past the bull and vote them out and the Numbers Boys didnt count on their purchased Government losing power and being replaced by one not swayed by their long dollars.
I'm willing to ‘bet’ that if they back thr PLP again, that the PLP never sees the light of another term in office.
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