By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A trade union leader yesterday urged the government not to impose new and or increased taxes on Bahamian workers in the upcoming budget, arguing: “They cannot afford it.”
Obie Ferguson, the Trades Union Congress (TUC) president, told Tribune Business that COVID-19’s devastating impact on jobs and incomes meant that any greater levies in tomorrow’s budget would be too great a burden to bear.
“There should be no new taxes on the workers in light of what is going on now,” he said. “My only concern is whatever tax measures the government is contemplating they ought to take into consideration the workers and loss of income that they are presently experiencing.
“The income is not there for there to be any sort of taxation on the workers. Whatever tax measures or new ones they anticipate putting into effect, that is something that must be borne in mind. The income is not there.
“I am getting a tremendous amount of phone calls with respect to lack of wages, lack of income and unemployment. I’m almost at the point of seriously considering hiring someone in my office to take the calls concerning lack of employment and income as a result of COVID-19.”
Mr Ferguson spoke out after Tribune Business last week revealed that the Government is mulling whether to increase the VAT rate to 12 percent on all property sales worth $1m and above as part of next week’s budget measures to plug a multi-million dollar revenue gap.
Multiple government officials, speaking on condition of anonymity, told this newspaper there was a strong belief within the Minnis administration that “the very hot market” for high-end Bahamian properties will be able to easily withstand this two percentage point increase.
The present structure levies VAT at just 2.5 percent on real estate sales transactions worth up to $100,000, with ten percent applied to all other deals, thereby giving the Ministry of Finance scope to target deep-pocketed buyers with higher tax rates to help pay for the debt and deficit blow-outs caused by COVID-19 and Hurricane Dorian.
This newspaper understands that increasing the VAT rate to 12 percent for all property sales worth $1m or more, which would bring it into line with the rate Bahamians pay on every day items, is just one of multiple revenue-raising measures being considered as part of a package intended to help ease the fiscal woe for the cash-strapped Public Treasury.
It is thought that these proposals are being largely targeted at those most able to pay, such as wealthy foreign real real estate owners, as opposed to middle and lower income Bahamians who have born the brunt of COVID-19, in a bid to ensure they do not inflict further social hardship or undermine the economy’s post-COVID rebound.
Any new and increased levies are also being accompanied by measures designed to boost foreign direct investment (FDI) and external currency inflows. Tribune Business was informed that the Government is also considering whether to establish a fund to receive investments by wealthy foreigners seeking economic permanent residency in The Bahamas.
This fund, established as an alternative to qualifying for permanent residency by acquiring property worth $750,000 or more, would pool monies received from overseas investors and use these funds to invest in a variety of infrastructure and social projects across The Bahamas.
Comments
themessenger 3 years, 5 months ago
Hee Haw, Hee Haw, this union jackass braying again.
“There should be no new taxes on the workers in light of what is going on now,” he said. “My only concern is whatever tax measures the government is contemplating they ought to take into consideration the workers and loss of income that they are presently experiencing."
The Bahamian people and his multitude of self entitled unionists want everything while contributing nothing. They want and receive National Insurance unemployment benefits, government funded meals, groceries and medicines, mortgage and rent relief and so the list grows on and on.
Where do they think all of this government provided largess comes from? The acres of money trees they're cultivating at BAMSI? Taxes is where it come from Mr. Ferguson so how much longer do you think the government provided free lunch will last if we don't all pay our share? Out of one side of your mouth you hollering that employers, including the government, have to foot a minimum wage increase. The private sector and our rapidly diminishing middle class is expected to pay increased taxes to continue to support the uneducated, unwashed and unappreciative, who, if you were to give them each a thousand dollars they'd spend it overnight in the numbers houses or on other frivolities before they'd put 25 cents of it in the bank for a rainy day. You weren't concerned with the workers wages, or lack thereof, when you were raking in the dues every month, but now the well done dry your mouth juicy. Where is the unions emergency fund to assist your members who you have milked for decades?
If they can find money for gambling, nails, hair weaves, false eyelashes and partying every weekend, all the while continuing to spread covid amongst us, they can afford to render unto Caesar his due.
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