Vat Is 'Unfair, Untimely And Unreasonable' - Dna
Tribune242:
DNA leader Branville McCartney continued his push for the government to rethink the introduction of Value Added Tax (VAT), calling it an “unfair, untimely, and unreasonable” burden to place on the backs of Bahamians.
Noting
that in September 2012, five months prior to the failed gambling poll,
Minister of State for Finance Michael Halkitis, in response to the
sovereign credit downgrade by Standard & Poor, indicated that the
Government was planning to release its Tax Reform White Paper for public
consultation “next month” (October 2012), Mr McCartney said it is clear
from all indications that the idea of introducing VAT was well in play
prior to January 2013.
“The
Prime Minister confirmed this during the mid-term budget debate in
February 2013 saying; ‘The Government is implementing a broad tax reform
package that includes the introduction of a Value Added Tax (VAT) in
July 2014. While that is an ambitious timeframe, I would note that we
have had the benefit of detailed studies of the feasibility of VAT in
The Bahamas’.”
Mr
McCarntey added: “Mr Christie in the House of Assembly continued: ‘The
White Paper (which was completed in September 2012) contains a fully
articulated policy framework for VAT. Following the public consultation
process, the Government will present a refined proposal, and advanced
legislation to bring VAT into effect’. We are gravely concerned about Mr
Christie who recently suggested to Parliament and the nation that the
Prime Minister had high level talks with the Minister of Finance on the
VAT issue.
“At
this meeting the Prime Minister confirmed that the Minister of Finance,
who apparently does not listen to the Prime Minister, was moving ahead
on VAT and for this reason he (the Prime Minister) left him (the
Minister of Finance) at home and would only let the Prime Minister
speak.”
With
these comments in mind, Mr McCartney said the public needs to worry
that Mr Christie’s views are “schizophrenic” on this issue as he appears
to be blaming “his alter ego for VAT”.
“Mr
Michael Halkitis, the Minister of State for Finance, stated earlier
this year that, apart from the imposition of Value Added Tax (VAT), the
Bahamas has no other viable option to spark the required streams of
revenue it needs to arrest government debt.
“However,
Prime Minister Christie, speaking either as Prime Minister or one of
his alter egos, stated that if anyone in the public sector has a better
idea he is ready to listen. Numerous local and foreign consultancy
groups later, we in the Democratic National Alliance ask, is this the
same Christie who in 2013 rejected the Nassau Institute commissioned
independent research study of ‘The Potential Impact of VAT for our
country’ by Mr David Godsell accusing him of ‘distorting the truth’, and
dismissed the DNA’s ideas as ‘nonsense’?
“Our
country has not rebounded from the most devastating recession we have
ever had and in light of the pending introduction of Value Added Tax we
in the DNA are left to wonder if this current government truly cares
about Bahamians. It cannot be fair for struggling hard working citizens
of the Bahamas trying to make ends meet to now be faced with the fear of
not being able to afford the basic survival items because of VAT.
Moreover, the people of the Bahamas must be reminded that this
government campaigned on putting people back to work and instead they
now propose to put extra taxes on their backs,” he said.
At this time, the DNA leader noted, VAT is unfair, untimely, unreasonable and undesirable.
He
said: “Mr Prime Minister there are alternatives… you just need to
listen. Bahamians are living in a state of fear. Fear of crime, fear of
increasing financial insecurity, and now, fear of VAT. There is no clear
vision in sight from this group of merry men in the PLP. Their leader
has been late, inconsistent and out of touch with the issues that face
Bahamians daily.
“Our
country is at a critical crossroad and demands that we make the tough
decisions to lead our country to prosperity. We need strong dynamic
leadership with a clear vision for our country. We need leadership that
is not afraid to lead.”
February 24, 2014
