The Tribune

By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

THE Office of the Prime Minister and Free National Movement leader Michael Pintard traded volleys yesterday after the government released its green paper on corporate income tax options.

The paper results from the government previously signing on to the G-20/Organisation for Economic Co-Operation and Development’s (OECD) drive for a minimum 15 per cent global corporate tax.

Mr Pintard criticised the Davis administration for releasing the paper on the government’s website rather than tabling it in the House of Assembly following a communication from the Prime Minister.

“This approach would have signalled to the country and the world the policy commitment of the government to this most critical matter,” he said in a statement.

He said the FNM rejects any proposal for new or increased tax measures “that do not come with a plan to reduce or contain unnecessary public sector expenditure”.

“Before agreeing to provide this reckless and extravagant PLP with a penny more of Bahamian taxpayer money, the PLP must document its concrete plans for spending cuts and spending restraints to begin in their wasteful undertakings,” he added.

Mr Pintard noted the four proposals outlined in the paper would harm economic growth, foreign and domestic investment and unemployment.

“The Bahamian people cannot accept a proposal that does not support sustained economic growth and better employment opportunities,” he said.

He added that the government should consider a fuller fiscal reform plan that examines public sector expenditure.

The Davis administration has not said whether it will implement any option in the green paper.

The OPM called Mr Pintard’s comments yesterday disingenuous, noting that the Minnis administration signed on to the G20/OECD tax reform plan.

“The consultation process being carried out by the Ministry of Finance is a standard and inclusive approach to policy-making,” the OPM said. “All voices must be heard in a matter of such national importance. We are disappointed that the leader of the opposition failed to comprehend the purpose of a consultation process. Instead of rushing decisions as past governments may have, this administration ensures that all relevant stakeholders can express their views before finalizing policy decisions.”

The OPM noted Mr Pintard voted for a “60 per cent” increase in value-added tax under the Minnis administration.

“Today, he is quick to critique final strategies yet his own track record is far from commendable,” the OPM said.