The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

FREE National Movement Leader Michael Pintard accused Prime Minister Philip “Brave” Davis of misleading Parliament, saying bills tabled last week show that the government is raising taxes.

During his budget communication on Wednesday, Mr Davis said the government would generate revenue “without raising taxes”.

However, amendments to the Passenger Tax Act show some tax increases will be implemented in the upcoming budget year.

“Under the proposed amendment to the Passenger Tax Act,” Mr Pintard said, “Bahamians and visitors will now have to pay a total of $4 per round trip for air travel in and out the country in a new levy –– which is essentially an increase on departure taxes, by whatever name it is called.

“This new ‘tax measure’ is an increased burden on Bahamians and impacts competitiveness of the destination by making expensive air travel even more so. The government is also imposing significant increases on the taxes payable by boaters and cruise passengers coming into the country. Together these new and increased taxes are expected to raise over $100m in increased government revenue.

“How then did the Prime Minister say that there are no new taxes in the budget? It is frankly disturbing and embarrassing that the country’s chief executive would continually mislead Parliament and the public in such a glib and gratuitous manner.

Mr Pintard said the FNM also opposes amendments to the Immigration Act and the Customs Management Act that would “delegate taxation powers down to the minister”.

“The amendments would allow the minister unilaterally to establish and set rates for mandatory fees and levies to be charged to taxpayers,” he said.

“The budget speech,” he added, “made no mention of a possible sugar tax or wellness tax, yet the government is proposing an amendment to the Customs Management Act that would delegate to the minister of finance the ability to levy the much-discussed sugar tax without seeking parliamentary approval. This cannot be. If the PLP wants to implement a sugar tax, it must come to Parliament and get approval for the structure and for the rates.”

For his part, Economic Affairs Minister Michael Halkitis told reporters on Thursday that increased taxes are for services that, in some cases, haven’t seen an increase in 50 years.

He said departure tax increases will only affect cruise ship passengers, not those travelling by air.

“We’re splitting hairs here,” he said. “I think if I tell you 99.9 per cent Bahamian people are concerned, I believe, I’m concerned about tax rises on me, alright? So if you raised the departure tax on cruise ships, I don’t think you’ll get an argument from anybody because if you survey 100 Bahamians –– 99 per cent will tell you we don’t get enough from them anyhow. They’re polluting our waters. They’re making a lot of money, and we don’t get anything. So I don’t think you’ll get an argument. So who, you know, if someone wants to split hairs on that, they’re welcome to it.”

“In some cases, there are some fees for service that have been the same for 50 years, so instead of charging $10 for service, maybe now it’s gone to $20. Someone might argue, okay, well, that’s an increase and oh, you know, they don’t see the distinction between a fee for service and a tax.”