The
first week of Value Added Tax (VAT) implementation has been a proverbial nightmare
for both businesses and consumers around the country. As expected, this
Christie administration has again failed at the execution of a major policy
initiative; and has, in effect, betrayed the confidence of the people of this
country, yet again!
After
being promised a reduction in the cost of living, Bahamians now face drastic
increases on even bread basket items while seeing no increases in their
salaries and no economic improvement. After being promised Mortgage Relief,
thousands of already struggling homeowners are waiting with bated breath for
confirmation on whether or not VAT will also be added to their mortgage
payments. After being promised transparency in governance, Bahamians are forced
to navigate this new environment without one very critical legislative element:
A FREEDOM OF INFORMATION ACT!
The
last seven days have proven that this government was ill-prepared for the
implementation of the new tax regime. Since January 1, both social and
traditional media outlets have been flooded with complaints ranging from the
apparent lack of consumer protection to the lingering confusions and
frustrations felt by a business community struggling to find its footing in the
still murky waters of the country’s Value Added Tax laws.
Rather
than a seamless, well executed application of the new tax, incomplete and
sporadic explanations from government officials have left many to interpret the
laws as they see fit. In fact, what few mechanisms were put in place to educate
the public and mitigate against the challenges surrounding the new regime have
failed miserably. The Democratic National Alliance has received countless
complaints from Bahamians who have reportedly been unable to reach anyone at
the government sponsored VAT hotline, both here in New Providence and on Grand
Bahama Island. And what happened to the proposed government agency that is to
be responsible for the collection of VAT revenue? Or the naming of the VAT Comptroller?
Certainly, these administrative issues should have been addressed long before
the implementation date. Unfortunately, recent media commentary from the
Minister responsible indicates this
LATE
AGAIN government is still working to finalize those details.
While
disappointing, the government’s handling of the entire VAT process is
unsurprising. From the very beginning, the legislation governing the process
was challenged, overly complicated and faced countless delays. Instead of using
those delays to its advantage the government squandered the additional time,
releasing the still UNFINALIZED DRAFT of the VAT Regulations just days ahead of
the actual implementation.
Without
question, VAT implementation thus far has been a failure of titanic proportions
and this government which claimed it was ready to govern ON DAY ONE, is
allowing our country to slowly sink.
Branville
McCartney
DNA Leader