The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

FREE National Movement Leader Michael Pintard says the Davis administration should give “serious consideration” to reducing taxes in response to soaring gas prices.

He said residents should better ration their resources but the government should still consider intervening.

“It is incumbent upon the government to have a broad stakeholder discussion with dealers and others who can impact the eventual price of fuel to the consumer,” he said.

“Secondly, those things that the government can affect, it ought to affect, so that’s stamp tax, duty, etc. Obviously one of the things they will have to factor in that discussion is what is the present impact they receive from the gas taxes and what are the consequences of foregoing that revenue. That would be an essential exercise and I know as a matter of course the technical experts will be able to guide officials in that regard.”

Bahamas Petroleum Dealers Association (BPDA) vice-president Vasco Bastian has said operators are seeking a 50 percent margin. They are threatening a strike during the Easter weekend.

Mr Bastian has said there is a risk that dealers will not be able to buy fuel, impacting residents.

The government collects value added tax on the wholesale and retail sale of gasoline, an area Mr Bastian believes should be targeted for intervention.

Mr Pintard said: “Dealers themselves are paying government I presume a range of fees and so the government should also have a discussion with them relative to the possibility of a rebate on some of those expenses that would then save them some resources given the fact that pressures are on both the consumer as well as some of the other stakeholders providing fuel inclusive of the dealers.”

Mr Pintard said whether the government can adjust taxes in response to the rising gas prices “underscores the importance of needing to move with some sense of urgency in completing the white paper on taxes so we could move away from the regressive VAT taxes.”

He said: “Both on the corporate side as well as the resident side we need a plan of action on what the new policy will be on the tax mix.”

Fidelity Bank Chief Executive Officer Gowon Bowe said yesterday reducing taxes on gas would be a shortsighted move. He said people should better ration their resources and make lifestyle revisions.

“Those things need not be mutually exclusive,” Mr Pintard said. “The government may need to intervene but it is in the interest of every consumer to revise in terms of how they manage their fuel consumption, their electricity consumption, their expenses that often prompt them to pursue loans and so forth. Consumers have to take a greater responsibility just in light of the challenge that we are now going through.”