As 2014 comes to a close, thousands of Bahamians across our archipelago
are preparing for the January 1 implementation of Value Added Tax (VAT).
Already struggling families must now brace themselves for additional cost of
living increases and business owners who had been planning expansions and new
hires have opted to shelve those plans as they wait to see what effect the new
regime will have on the economy.
In just days, the new tax regime threatens to completely and
indefinitely alter the economic landscape of the country, and not for the
better. Even worse, in the lead up to the launch of the new tax laws, the
government bungled the campaign which had been expected to prepare the public
for the widespread changes. Instead, the government has consistently bullied
the business community into co-signing this venture, threatening them with
heavy fines and jail time for non-compliance; this, even as government
officials continue to lead the pack for failure to pay their own taxes.
The January 1 implementation date will also take effect without the
existence of a Freedom of Information Act. Given this administration’s
propensity for corruption, the enforcement of such legislation is key. In fact,
Freedom of Information was one of several recommendations made by the
government’s own VAT consultants who highlighted the need for such laws to
exist in a VAT environment specifically as a means of making the process as
transparent as possible. Still, this crucial piece of legislation, which has
already been passed in Parliament, has yet to be enacted by this administration
and so far no steps have been taken to facilitate the more than 100 amendments
that the government claims is needed to enforce it.
Like countless other pressing national issues, an overhaul of the
country’s tax system is an idea whose time has come. Unfortunately, the
government’s handling of the initiative has proven that without proper
planning, consultation and the advancement of a focused and widespread
education campaign, such a strategy could have catastrophic consequences for
our already struggling economy. Time and time again, the actions of this PLP
administration prove that the idea of economic stability was nothing more than
an empty campaign promise.
Instead of a clear and concise policy from which business owners and
consumers could build concrete plans, what Bahamians have gotten have been
countless delays in advancing the accompanying regulations – a draft of which
was FINALLY made public last week – and unclear and often misleading government
proclamations which have served only to feed into the misinformation about the
initiative. Even now, just days away from the implementation the average
Bahamian remains unclear of how the new system will affect their lives on a day
to day basis. Who will protect the small man? Who will protect the consumer?
Certainly this government has proven that they are NOT up to the task.
As the Bahamas continues to grow and develop, a responsible government
must do what is necessary to ensure that all aspects of our country’s economy remain
strong and vibrant. This government has failed miserably in this regard. VAT is
BAD FOR BUSINESS and certainly BAD FOR THE BAHAMAS!
Branville McCartney
DNA Leader