Laing: Budget Prepares For The Future
By Kendea Jones:
More than a month after the Ingraham administration presented its 2010/2011 Budget, State Minister for Finance Zhivargo Laing is still fighting off a firestorm of criticisms, claiming that the government made the best move for the country. The new fiscal plan, which takes effect on Thursday, has a rash of cuts and tax increases.
For instance, come July 1, the government will introduce a 65 per cent rate for cars that are 2,000 ccs or fewer, a 75 per cent rate for cars between 2,000 and 2,500 and an 85 per cent rate for all other cars, except hybrids, which face the lower duty of 25 per cent.
According to Prime Minister Hubert Ingraham, this allows many fuel-efficient, four-cylinder vehicles to be covered under a rate of duty that is mid-way between the low and high rates.
"I think there were some adjustments made for the timing of when the cars will come in and some provisions made for persons who would have imported vehicles between the 26th June and July 1 when those rates take effect," Minister Laing explained.
"Commercial credits will be granted to auto dealers and a refund to individuals who would have imported vehicles during that period."
But according to the state minister, not only did the government present a budget that would sustain the country for the next 12 months but beyond that timeframe.
"The reality is that we presented the budget we did so that we could put ourselves in a position where we could cope with a crisis if it occurs," he said.
"We didn’t want to grow the debt in the midst of the crisis. So, we are looking to claw back some of the damage and put ourselves in the position that if a hurricane damages The Bahamas, we would be able to respond. If there is a crisis we would be able to do what is necessary to respond to it."
Minister Laing also again dispelled the notion that the government is broke as "ludicrous."
"The government couldn’t pay salaries if it did not have money. This is a question of putting the fiscal house in the position that you are able to operate in a sustainable manner; meaning that you are not doing something that is going to cause you to be unable to maneuver," he said.
"We are not doing something that is going to cause such a heavy load on future generations. The government is not going to spend widely today, as if there is no tomorrow. Anything can happen tomorrow."
The 2010/2011 Budget allocates some $1.55 billion for recurrent expenditure and more than $265 million for capital expenditure.
Government debt at the end of June 2011 is projected to stand at 49.2 percent of GDP, up from 47.3 percent a year earlier.
June 30th, 2010
jonesbahamas
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; and their local, regional and international policies and perspectives.
Showing posts with label Bahamas tax increases. Show all posts
Showing posts with label Bahamas tax increases. Show all posts
Thursday, July 1, 2010
Thursday, June 3, 2010
Bahamas tax level remains "one of the lowest in the world" and simply "cannot cut it" in the long term, says Prime Minister Hubert Ingraham
PM: Bahamas tax level one of world's lowest
By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:
THE level of tax taken in by the government each year remains "one of the lowest in the world" and simply "cannot cut it" in the long term, the Prime Minister said yesterday, as he defended tax increases being imposed in this year's budget and warned that more substantial changes will be required in the future.
Prime Minister Hubert Ingraham said that the country's low-tax status remains the case "notwithstanding the increase in taxes" the Government is implementing to shore up its revenue this year, such as those on cars, local beer, tourism and domestic retail banks.
He said that the Government currently collects the equivalent of 18 per cent of the country's gross domestic product in tax, comparing this to the tax collected in other nations such as Singapore (23), St Lucia (29), Trinidad and Tobago (30), Jamaica (30) and Barbados (33).
"Notwithstanding the increase in taxes that we are putting in, The Bahamas has one of the lowest rates of taxation in the world. That's notwithstanding all of the islands and services we have to duplicate. You know how easy it is to run a Barbados with a similar population (size), with one island, one set of high schools, one set of primary schools, one set of roads, one set of electricity to generate?
"But while we are expensive to operate as a country, we're only getting around 18 per cent of Gross Domestic Product in tax. That is not going to cut it. That cannot cut it. We are hoping to raise that to 19.7 per cent in the coming year. That is optimistic, as I said."
Mr Ingraham complained that Bahamians "demand all of these services but are not prepared to pay the taxes" that are required to sustain them.
And in this regard, pointing to more sweeping changes to the way the government collects its revenue and from where, Mr Ingraham said that the government of The Bahamas will "one day have to be prepared to say to the public of the Bahamas that the current tax system is inequitable and unfair and do something about it."
He added that Bahamians tend to "demand all of these (government) services but are not prepared to pay the taxes."
"Barbados has excellent social statistics. But the people pay," he said.
June 03, 2010
tribune242
By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:
THE level of tax taken in by the government each year remains "one of the lowest in the world" and simply "cannot cut it" in the long term, the Prime Minister said yesterday, as he defended tax increases being imposed in this year's budget and warned that more substantial changes will be required in the future.
Prime Minister Hubert Ingraham said that the country's low-tax status remains the case "notwithstanding the increase in taxes" the Government is implementing to shore up its revenue this year, such as those on cars, local beer, tourism and domestic retail banks.
He said that the Government currently collects the equivalent of 18 per cent of the country's gross domestic product in tax, comparing this to the tax collected in other nations such as Singapore (23), St Lucia (29), Trinidad and Tobago (30), Jamaica (30) and Barbados (33).
"Notwithstanding the increase in taxes that we are putting in, The Bahamas has one of the lowest rates of taxation in the world. That's notwithstanding all of the islands and services we have to duplicate. You know how easy it is to run a Barbados with a similar population (size), with one island, one set of high schools, one set of primary schools, one set of roads, one set of electricity to generate?
"But while we are expensive to operate as a country, we're only getting around 18 per cent of Gross Domestic Product in tax. That is not going to cut it. That cannot cut it. We are hoping to raise that to 19.7 per cent in the coming year. That is optimistic, as I said."
Mr Ingraham complained that Bahamians "demand all of these services but are not prepared to pay the taxes" that are required to sustain them.
And in this regard, pointing to more sweeping changes to the way the government collects its revenue and from where, Mr Ingraham said that the government of The Bahamas will "one day have to be prepared to say to the public of the Bahamas that the current tax system is inequitable and unfair and do something about it."
He added that Bahamians tend to "demand all of these (government) services but are not prepared to pay the taxes."
"Barbados has excellent social statistics. But the people pay," he said.
June 03, 2010
tribune242
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