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.