The Tribune

By LYNAIRE MUNNINGS 

Tribune Staff Reporter 

lmunnings@tribunemedia.net

FREE National Movement leader Michael Pintard said he does not intend to increase the value-added tax rate above ten percent if elected prime minister, despite vowing to remove the tax from certain healthy foods, medicines and feminine and infant care products.

The Minnis administration raised VAT to 12 percent, insisting this was needed to accomplish its fiscal consolidation plans. The administration simultaneously removed VAT from breadbasket items as a concession.

The Davis administration, in turn, reduced the VAT rate to ten percent but eliminated VAT exemptions. Removing exemptions angered some, especially because the Progressive Liberal Party did not foreshadow this during its election campaign.

Yesterday, Mr Pintard said he does not intend to increase the overall VAT rate to compensate for the potential revenue loss of removing VAT from certain items. He discussed his VAT exemption plan during Saturday’s one-day FNM convention.

He said yesterday: “There are areas that affect the most vulnerable Bahamians, where there is a substantial amount of purchases that are carried out in those areas and we believe that Bahamians need relief in those particular areas and that we should find a way to do that.” 

Mr Pintard said other revenue-generating measures would offset the VAT concessions.

“If you do what you need to do in terms of collecting outstanding revenue, if you do what you need to do in terms of improving the health of Bahamians, you will reduce the amount of money you have to spend to correct the health dilemma that emerges,” he said.

“I believe that if you protect Bahamians on the front end, meaning healthy foods that help them, less chance of them getting sick, and demanding millions more on the back end for treatment, then that is a good thing.”

Likewise, he said if people can afford medicine, this would reduce the fiscal strain on the government.

“I don’t buy that there’s going to necessarily be some substantial increase or shortfall in revenue,” he said. “The long-term benefit will not only be good for people’s health, but also for us to better manage the scarce resources that we have.”