[xml][/xml]
The Bahamas Weekly Facebook The Bahamas Weekly Twitter
Bahamian Politics Last Updated: Feb 13, 2017 - 1:45:37 AM


"VAT: A Hindrance, not a Help to Investor Confidence"
By Branville McCartney Leader, Democratic National Alliance (DNA)
Mar 13, 2014 - 5:29:46 PM

Email this article
 Mobile friendly page

The Democratic National Alliance noted with interest, comments made by Former Parliamentarian Tennyson Wells on the Government’s plans to implement Value Added Tax (VAT). In his remarks at a College of the Bahamas forum on the subject, Mr. Wells not only encouraged Bahamians to embrace the idea of VAT, but further suggested that its implementation would spur investor confidence in the Bahamas.

While only Mr. Wells himself would know his motive for becoming an advocate for the government and this regressive tax he is clearly off base. As a prominent businessman and major investor himself, Mr. Wells is well aware that factors such as a robust GDP, credit availability and job creation are all critical to inspiring investor confidence. He might also recall a time as a small businessman how burdensome taxation kills the development of small business the key economic driver of National development.

Since announcing plans to move forward with VAT, the island of New Providence and the country at large has seen large, medium and small investments, put on hold or permanently shelved. Businesses have stopped hiring, and many are actively engaged in downsizing their operations.

Is this the economic confidence of which Mr. Wells speak? Does his new found love affair with the Christie Government shield him from the realities that Bahamian businesses are faced with because of the combined impact of the Great Recession and failed policies of the FNM Government?

In years past, Investors flocked to the Bahamas because of its relatively low tax. This same environment spurred the rags to riches story of many Bahamians of humble origins. The idea that an additional tax burden will somehow spur new investment in the country simply makes no sense.

Despite claiming to be open to suggestions, the Christie administration has ignored the cries of the local business community and has instead, attempted to bully them into compliance with the new regime. How can a Government which campaigned and won on the premise of “Believing in Bahamians” now disregard the very people that put them in office?

Even worse, Mr. Wells’ dismissed the concerns of the local business community of which he himself is a part, as a “matter of fear”, insisting that Bahamians stop the negative talk about VAT and allow the government to move forward with swift implementation. On that note, Mr. Wells is very correct. Business owners are afraid, and rightfully so. In just over 100 days, the new regime is expected to be implemented however the Government has yet to even table the accompanying legislation, nor have they launched the promised education campaign. No right minded business person can or should support this idea.

There is no discounting Mr. Wells’ position as an astute businessman with top political connections, however his comments on this matter is an attempt to solidify the lack of respect this administration has shown the public on this issue.

Rather than pushing this administration’s warped agenda, The Democratic National Alliance calls on Mr. Wells to objectively weigh the options before him and change his stance.

 

 

 


Bookmark and Share




© Copyright 2014 by thebahamasweekly.com

Top of Page

Receive our Top Stories



Preview | Powered by CommandBlast

Bahamian Politics
Latest Headlines
DNA PR: It's time to change the system
DNA on Extension of Emergency Orders
DNA on shanty town demolition court order
DNA on new lockdowns on Family Islands
PLP Candidate for North Andros and The Berry Islands on Lockdowns in The Berry Islands and Andros