The Tribune

THE Free National Movement says Prime Minister Philip “Brave” Davis can do much more to help Bahamians deal with inflation.

In a statement issued yesterday, FNM leader Michael Pintard said the government should cut the tax on gasoline at least until the end of the fiscal year; eliminate VAT on all breadbasket, medicines and baby items; suspend the VAT charges on a broad range of food staples outside of the listed breadbasket items at least until the end of the fiscal year; and expand social welfare vouchers to qualifying Bahamian families that are targeted at support for food, rent, cooking gas, care for children and other key essentials.

He also suggested that the government should stop its plan to add VAT to expenses covered by medical insurance.

Mr Pintard said the suggested tax relief measures must be paid for through additional revenue measures or reduced spending. To cover the cut in gasoline tax and the elimination of VAT on essential items, the FNM calls on the government to put back in place the 12 percent VAT on real estate over $2 million adding that this tax cut has only benefited wealthy Bahamians and foreigners.

“The government should also abandon its current illegal tax cut on yachts for the wealthy.

Further, the government should eliminate the $4m increase in the international travel budget, radically reduce the $30m allocation for consultants, and scale back planned spending for events, entertainment and other non-essential items.

“The Davis administration must give priority to helping struggling Bahamian families deal with inflation, instead of giving the tax breaks to their wealthy friends and backers,” Mr Pintard said.

His statement referred to Mr Davis’ recent comments regarding his “admitted inability in addressing inflation” and his “hypocritical” calls for Bahamians to be frugal.

While Mr Pintard said it is in each person’s best interest to manage their scarce resources wisely given the challenging economic times, the Davis administration “lacks the moral authority to issue that guidance given their example of spending.”

“All right-thinking Bahamians must wonder how the Prime Minister could actually admonish Bahamians to be frugal when he leads what is proving to be the most extravagant, partying government in the history of The Bahamas,” Mr Pintard said.

“This is an administration that takes large contingents on first class travel around the world. This is an administration that books expensive private jets. This is an administration that hired selected political allies on extravagant contracts. This is an administration that throws lavish parties, events and celebrations at every turn.

“We demand that the Prime Minister lead by example and demonstrate his commitment to frugality by immediately cutting down on the runaway spending that his government undertakes on a daily basis at the taxpayer expense,” Mr Pintard said.

On Sunday, Mr Davis urged Bahamians to be frugal with their spending habits due to rising inflation, saying it appears that the country is “in for a rough ride for another few months” based on the predictions of finance experts.