"running out"...try 'RUN OUT'...there is absolutely ZERO chance that the people who are going to bear the brunt of trying to come to terms with this, get all their systems in place, figure out the accounting and reporting side of things to do this effectively without getting WHACKED by this new enforcement agency is ZILCH. This is not something that you can turn around on July 1st and say to people who are not ready...oh that's OK...we will overlook it for a short period of time until you figure it out. NO...this has to be fully documented and fully explained, and fully tested before a go live takes place...every single business that will fall into the VAT scheme must be up to speed and ready...they haven't even given us any rock hard information on it yet so we can in turn hand that off to our software vendors to make things happen...and that's just for businesses that run a full blown accounting software in conjunction with their point of sales...all the people out there still running manual cash registers are in deep crap!! Not ready, no where near!!

Off Topic: Have you noticed that the Tribune is turning off comments on some stories? Wonder why? Is this related to the mass resignation of editors at the Tribune?

only restrictions I saw was on the court case involving 2 ministers of the word. that is a powder keg, so I understand.

BTW, have you ever seen anyone comment on the Guardian website? I submitted a couple of times, but never saw a comment posted.

Enjoy it here while you can.

threat of lawsuit, maybe or some warning from the courts...the truth hurts

Halkitis sez: Don't worry, be happy in Abaco

> Mr. Halkitis said the government has
> an implementation date of July 1, 2014
> but “we have to make sure everyone is
> ready; we’re pushing hard towards that
> target.”
>
> Explaining more on VAT Mr. Halkitis
> said it is a multi-stage consumption
> tax that acts largely like a sales
> tax. It is not a regressive tax like
> income tax. He said the government
> would be exempting certain breadbasket
> items, financial, medical and
> educational services to minimize the
> impact.

Explain how income tax is regressive please!

[link text][1]

[1]: http://www.theabaconian.com/2014/02/04/…

We will also be the first country in the world to try to implement VAT that does not already have a well established income tax and revenue agency in place...so moving into the more complex VAT was not such a major undertaking...but NOOOO...we can do it so much better here in the Bahamas, we can bypass one of the primary tax structures that governments depend on, income tax and sales tax, which are relatively simple, to the most complex of VAT...forget baby steps, let's just whack people over the head with a 2x4.

Ohdrap4,

Mr. Halkitis doesn't understand how the VAT works himself. Sales tax is a consumption tax that is only levied at the consumer. Sales tax is not paid between the manufacturer through the final vendor. The VAT is a punitive, multi-levied tax that is charged at each exchange of goods. The VAT however was meant for countries with a thriving manufacturing sector, not a services-oriented sector. This tax is the most regressive due to its complex record-keeping.

Income tax is a regressive tax because in almost every country the rich pay the least amount of tax and the middle class bear the brunt of most of the taxes paid. This is due to how the income tax act is written (by politicians, in most cases, rich politicians) and the laws allow various deductions and loopholes that only the rich can take advantage of and therefore pay much less tax than they should. Also income tax is very difficult to manage in terms of compliance, since each taxpayer must submit their return annually.

Please do not be fooled by these politicians. They are just repeating the rhetorice that the IMF has fed them. This VAT will increase the cost of living for EVERYBODY to the tune of price increases of 8 to 20% more. The average person can expect an annual tax bill of between $5,000 and $15,000 under VAT depending on your consumption.

Do your research!!! The PM has only admitted that they now are hiring a consultant to examine the impact of various tax scenarios on the Bahamas -- something which Halkitis claims was already done.

Das how we do it baby...LOL ................. PLP .........All Da Way

The Bahamas is a unique environment ... u cant cookie cut things from other places and expect it to work. Thats the problem with our leaders........ where's COB research??????

COB don't do research. They take opinion surveys among their friends and students, which get published because there is a cohort of fake doctors in the world who keep their own academic journals.

However, me believes that they don't let COB do research because in 1997 they predicted the PLP would win the election in their poll, a moratorium on opinion polls was placed until they learn how to select an unbiased sample.

An American Tax attorney was elected as a Member of Parliament and brought in with him this type of taxation called Valued Added Tax guess who is going to make a bundle of money with his Tax law firm ????

But truth be told, the VAT poster boy was always Zhivago "Monavie", the economist who said the global crisis was not going to affect the bahamas.

They (the government) are a failure and we end up paying for their failure. They can't collect taxes owed to them, they do not do their job, they waste our money, they look after their own and screw the Bahamian people at will, they play like they are "hero's" and superstars, yet now they want more of OUR money to waste, steal, and buy votes with? Stick it where the sun don't shine you utter failures! You and yours have destroyed this county with your culture of dependance, your stealing, your vote buying, your total disregard for the regular Bahamian people. I am sick of being played for a fool. They do not know what they are doing so how can they inform the people? Stupid is as stupid does and The red and yellow are just petty thieves when you boil it down, who really only know how to steal, so how could they explain VAT?

ALL THEY NEED TO TELL the family island residents is that after July 1st, their dollar will be worth 15 to 30 cents less than its worth today. A $100.00 note will be worth between $70.00 and $85.00. Fifteen dollars will go directly to government for VAT and there can be up to another $15.00 in inflation because companies, like Super Value and John Bull will have to pay 15% VAT on all the services they use like accounting, rent, water bills etc., and they may have to pass these costs on the poor overburdened consumer.

And while many of the stores on the family islands may not have to py VAT directly to the government, they will have it added on to goods they buy from Bahamas Food Services, Asa Pritchard, Milo Butler, so the prices on the family islands will increase, minimum of 15%

You pretty much hit the nail on the head their John...and the price increases that everyone is seeing and complaining about at the moment is a direct result of increased customs processing fees and increased business license fees that have come on line in the past 12-18 months, just to name a few...VAT will just compound these already major cost increases.

And let's not forget environmental levies, which depending on the product, are huge. $5 on a car tire is noy the same as $15 on a coffeemaker, and these levies don't go in customs duty exemption, in case one decides to bring one from miami.

But, as it is today in Abaco, at maxwell's there are some articles marked with a green dot, which means they were purchased from wholesaler in Nassau. The prices on those are astronomical. You do get a better deal on things they clear directly in Abaco, even cheaper than Nassau.

I think of VAT as a chain markup, the govt join the middle man in the markup chain and wants his cut.

And I have said before, that, if I bought an icecream freexer and paid 45% customs duty, it was a one time fee. Now the govt collects $0.45 every time i sell an icecream cone.