Thursday, December 12, 2013
YOUR SAY
By TIMOTHY ROBERTS
MY name is Tim. I am a 40-year-old graphic designer on the Island of Abaco and a citizen of the Commonwealth of the Bahamas.
I believe the Bahamas is indeed in need of tax reform; in fact we are likely more than overdue. Import duties have long been an inefficient model for the country due in large part to how easily and often they are circumvented and go unpaid.
However, the solution is not a Value Added Tax (VAT).
Based on the current information available, VAT will most certainly lead to a significant rise in the cost of living – something that is already relatively high – as it will lead to substantially higher cost of services.
These will in turn trickle down to the consumer.
The net result of increases in costs to consumers will lead to a contraction of the economy and ultimately a reduction of revenue to the Public Treasury.
The fallout of this will lead to businesses laying off persons to reduce expenditures as they hope to break even.
Before, however, we even have a conversation on raising taxes we must first reduce spending.
Any human being on earth, if they spend more money than they make, will find themselves in debt.
Anyone who seeks to borrow must ensure that they have the means on their own to pay such a loan back without bringing unnecessary hardship on themselves or their dependents.
The government has not taken the known fiscally prudent path but insists in overspending (much of which is in fact wasteful spending) after which they unconscionably turn to the citizens to pay back by taxing them even more.
We must have a fiscally prudent government before they start adding more or higher taxes or a different tax.
In implementing the Central Revenue Agency (CRA) they will spend countless millions building, outfitting and employing yet more people in turn eating away at the potential revenue the government will collect from VAT. All the while still employing hundreds of Customs officers.
The government must become more diligent – much more diligent – at collecting taxes.
The nation suffers when the necessary revenue is not collected and successive governments have chosen to borrow money instead of raise capital through the proper collection of taxes.
On the way to achieving fiscal prudence, it will be of great importance to implement a Freedom of Information Act and a Public Disclosures Act by which We The People can hold the government accountable.
We, as a nation, also must do our part. We must hold the government accountable while ourselves doing our reasonable part by paying our taxes, levies and fees. When we don’t do our part it hurts the entire country.
Today we are on the precipice of a perilous economic future and VAT is not the means to a more prosperous tomorrow for the Bahamas. We must all stand together and let the government – our government – know that VAT is not for us.
I believe together we are better. And together we can build a Better Bahamas.
Comments
Alex_Charles says...
VAT can work if other taxes are balanced with it. But when you raise customs duties, various costs for government services and throw VAT at 15% ontop of all of that it's a bad idea. But when has logic ever had influence on decisions being made in this country? VAT will go through the people will suffer and vote in the other party and the cycle will continue as always.
Posted 12 December 2013, 5:24 p.m. Suggest removal
john33xyz says...
I believe the VAT is good in that it will ensure that all the free-loaders have to pay something. The so-called "poor" are always exempt from paying anything. If the Government does not turn fool enough to exempt the price-controlled food items from VAT then at least the "poor" will have to contribute to all the free clinics and free schools they attend. It will also give them less money to send abroad through various means.
The overhead to us of a mass of "poor" people breeding like rabbits and contributing nothing to the tax base is what is killing us and causing debt.
I'm sure all the illegal immigrants are just hating the VAT - and the churches are probably hating it too because it means less money "in the plate" for them to buy more cement blocks.
However, it will be more money for the government to buy cement blocks to build schools and training centers and blood pressure medication for the elderly and things for people with legitimate needs.
I hope they listen to James Smith and implement it at 7.5% or even 10%, and do it on schedule.
The ALTERNATIVE TO VAT is a reduction in the value of our currency. Imagine if our dollar suddenly became worth only 75 cents in US$ ? ? ? That means anything you want from Miami for $100 will cost you $133. That's a 33% VAT - so to speak. I think 10% or 15% is much much better. We won't get to choose when our dollar is devalued - that decision will be made by the IMF as soon as they run out of patience.
Either way we are going to pay - because we just keep needing to spend. It is time to pay the piper for all those duty-free diapers and baby food we been gettin and the operating costs of the 24-hour delivery room at PMH.
Posted 13 December 2013, 10:15 a.m. Suggest removal
B_I_D___ says...
http://barbadosfreepress.wordpress.com/…
Posted 13 December 2013, 3:01 p.m. Suggest removal
john33xyz says...
I just finished reading most of the Act and stumbled upon this part ...
SECTION 75(2) - A taxable person must maintain records by electronic means including, but not limited to, the use of --
(a) such electronic tills or point of sale systems as may be approved by the VAT Commissioner; and
(b) computerized accounting systems as approved by the VAT Commissioner.
DOES THIS MEAN that Bahamians will be forced to purchase certain systems "approved" by the VAT Commissioner without any particular approval or disapproval rules/guidelines (just like how work permits are approved or denied in Immigration where there are NO RULES as to how you can qualify or fail to qualify) ????????????
Have they simply not yet prepared the list of requirements that a POS or Accounting system must comply with - so that programs can begin to be developed by Bahamian programmers?
Or do they have certain companies in mind that they will "approve" so that they can "get their cut" ?
Or do they just think (like in most other arenas as they think) that Bahamians are too stupid to make computer programs and so must be given particular solutions that they must purchase and simply obey like idiots?
I know the answer is probably option 3 - but was hoping to hear from others on here what they think is BEHIND that particular regulation.
Posted 15 December 2013, 10:16 p.m. Suggest removal
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