The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Leader of the Opposition said the government has not improved the ease of doing business and said it is “quite the opposite".

Michael Pintard said the Prime Minister’s Budget communication is not business friendly and has gone “quite the opposite” on improving the ease of doing business.

Citing the recent waves of enforcement measures on the insurance industry, firstly the proposed changes on the implementation of Value Added Tax (VAT) on health insurance and also the initiative for insurance companies to consider a mandate for them to invest 50 percent of their portfolio in government securities, both initiatives Mr Pintard called “incredible", and asked the government to provide a rationale for it.

Mr Pintard also said: “We also saw in the case of pharmaceuticals and food store owners where the government that does not have discipline and how it spends our money, is seeking to determine and dictate how private industry spends theirs.

“Under my administration, we intend to work collaboratively with private sector in the best interest of Bahamians, but we believe smaller government, we also believe that the money is best suited in consumers pockets and business pockets as opposed in the hands of government.

“The government signal that its intention to make adjustment in this budget by reducing the amount of funding available to state owned enterprises. We are going to go through the figures. The initial glance does not show any substantial or transformative adjustment in this regard.”

The Prime Minister in his budget communication also signalled that he does not intend to raise taxes, but also said he would increase revenue.

Whether or not businesses should be concerned for a change in the government’s approach towards increasing taxes, Mr Pintard said: “I don't know about whether or not he's going to change his mind. That's in the realm of possibility. But I think it's more so the pressure that they intend to exert on businesses. Businesses should expect that that is likely to continue.

“This government has been very disrespectful to businesses, it doesn't see the need to consult adequately in advance and it obviously is sometimes not informed by the appropriate studies to justify some of the decisions that they're making.”

Further adding that all of these decisions on the insurance, pharmaceutical and food retail industry “reeking of desperation", Mr Pintard also noted that with regard to the Prime Minister’s comments on producing a primary balance surplus of $175.6m at the end of March, 2023 that he has to see the figures in order to believe that.