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Columns : Letters to The Editor Last Updated: Feb 13, 2017 - 1:45:37 AM


Rev. Terrence Jones' formal petition to PM Christie against VAT
By Rev. Terrence A. Jones Eternal Light Deliverance Center
Sep 19, 2014 - 9:36:25 AM

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Right Honorable Perry Gladstone Christie
Prime Minister Of The Bahamas:

Good day to you and your Cabinet. This letter is a formal petition against the implementation of the Value-Added Tax (VAT). Please cancel your plan to introduce VAT into our economy. The impoverished, which constitutes the majority of our population, cannot handle VAT. It is economically wrong and socially wrong.

You say you are “For the people” and claim “Bahamian First.” Well consider this sir: A businessman who lives off 10% of his income imports materials for $1,000.oo pays 7.5% VAT, then marks up his merchandise by 50%. He then sells it to a large contractor who also pays VAT on the new price and sells the merchandise to a sub-contractor, who must also pay VAT. He marks it up by 50% and sells it to the consumer at this new price. Before VAT the price for this product would have been $2250.oo. The new price due to VAT would now be $2603.o7. This is a 15.69% increase. Generally construction materials are 45% and labour 55% of the collective cost. This means that labour would then increase by 19.18% because of VAT; giving the consumer (15.69+19.18) a 34.87% mark up in price because of VAT. Here are a few more facts for you Mr. Prime Minister and Members of the Cabinet:

1. The businessman’s sales will increase by 7.5% due to VAT, allowing him to earn an additional 3.75%, and can now live off of 6.25% of his income instead of 10%. VAT has only made this wealthy man wealthier.

2. The middle class home owners who now lives off 100% of their income, due to the recession, will be subjected to a 34.87% increase in cost of living because of VAT and must now live in debt, sinking them below the poverty line. They were already spending 100% of their income, where are they to get the additional 34.87%?


3. The poor who were already below the poverty line (again, the majority of Bahamians) will sink further below that line. Would there be any hope for them? By increasing the number of poor and severely impoverished amongst us we would become a nation of pan handlers, which would ruin our tourism industry.

4. The businessman has a way of recouping what he spends on VAT, as Mr. John Rolle says, “He passes it on to the consumer.”

Honorable Christie, I write this letter to you because you say you are “For Bahamians!” You also said, “I have to do what’s best for the country, and if it won’t hurt the people I’ll push it forward.” Well Sir, VAT will hurt the people, it will hurt the Tourism market and it will hurt the country. The only individuals benefiting from VAT will be the rich, the small minority. That is the evil heart of Capitalism. I was born and grew up in a country dedicated to the pursuit of utilitarianism, the philosophy that the best course of action is the one that helps the greater number of people. Since government is to be for the people and VAT is against the people, this government should be against VAT.

I do have some Good ideas about reducing our country’s debt if you wish to hear them. You can contact me at the numbers listed below.

Phone: 352-8182
Cell: 441-8082

Thank you for your time,
Sincerest Citizen of The Bahamas,


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