A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor.
Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans.
Thursday, February 20, 2014
Value Added Tax (VAT) is viable in The Bahamas
“VAT is Viable,” says Leading Auditor, Calls VAT ‘Most Equitable, Transparent’
Kendrick Christie, President of the Association of
Certified Fraud Examiners Bahamas Chapter asserted that “Value Added Tax (VAT)
is viable in The Bahamas.”
“Business owners must be responsible with the
information they purport as facts,” says Christie. “A lot of what I am hearing
is at best anecdotal. The reality is the government is being prudent by
aggressively tackling tax reform as the current tax system, led by customs
duties experience high levels of leakage,” Mr. Christie explained. “VAT allows
for enhanced checking ability for internal and external auditing and analysis
that can be useful in business strategy.”
Mr. Christie’s comments come as the Bahamas debt is
expected to reach just over $5 billion by June 30.
“The accounting profession has been conducting
training for its members and the public for almost a year to ensure individuals
are fully prepared for the transition to VAT,” Mr. Christie replied when asked
about how prepared his industry is for VAT’s implementation.
“There will be opposition to any increase in taxes
at any point in time,” Christie added.“The truth is that to avoid downgrading of our fiscal and monetary
position, the government must act. The government may feel that they are in a
Catch 22, however, the decision is clear – a new tax system is needed and one
of the most equitable and transparent is VAT.”
Mr. Christie complimented the government on its
outreach to the different sectors of the business community. “It appears to be
a multi-step educational process which started with the business community. I
now note the consultation with consumers and I urge them (consumers) to
prepare, ” he said , noting he expects the educational campaign to increase
once the Value Added Tax Bill and Regulations are passed through Parliament.
since its introduction, has been the most successful fiscal tool worldwide for
revenue generation.No other taxation
system has been adopted more rapidly than VAT and it has become the mainstay of
national finances for developed and developing countries.