By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Ministry of Finance is aiming to kick-off a renewed Value-Added Tax (VAT) education campaign this month, but is still waiting for the Christie Cabinet to approve the revised Bill and regulations.

John Rolle, the Ministry of Finance’s financial secretary, effectively confirmed to Tribune Business that VAT preparation/readiness efforts were being delayed by the wait for “final directions” from the Government.

“That you will see very shortly,” Mr Rolle replied, when asked when the Government would re-start its campaign to educate the private sector and Bahamian public on the finer details of the 7.5 per cent tax.

“That is something we are agreed to begin to deliver this month,” the Financial Secretary added.

“I can say that the Government is currently reviewing the draft of the legislation, and that sets the tone for a well-informed education campaign.

“We will await the final directions from the Government. We anticipate getting our directions very soon, and we’ll be prepared to act once we get those. We have mapped out a plan that will take us through January and beyond. There will be a lot of action there.”

Numerous businesses and private sector leaders have warned via Tribune Business that “the clock is ticking”, with VAT’s proposed January 1 implementation now less than six months away and much still unknown.

Robert Myers, the Coalition for Responsible Taxation’s co-chair, last week told Tribune Business that there had been no contact with the Government on VAT and wider fiscal reform since the 2014-2015 Budget was unveiled at end-May.

“We’ve not had a meeting since the Budget over a month ago,” Mr Myers said of the Coalition for Responsible Taxation’s dealings with the Government.

“We’re here. We’re available, but we can’t sit at the table on our own. I was a little apprehensive going away for the summer, but it seems as if these guys don’t care.

“I’m not sitting there, waiting for the phone to ring. I can’t get a response by the Prime Minister, anybody, whether by phone call or e-mail.”

This implies that a whole month has been wasted post-Budget, even though the Government and the private sector are at a critical point in terms of preparation and readiness for VAT.

The three-person Task Force that Prime Minister Perry Christie announced would lead the educational effort has yet to be appointed, and with key decision-makers in both the public and private sector set to depart (or having gone) on vacation, the effectiveness of such an effort over the summer months is in doubt.

Dionisio D’Aguilar, a former Chamber of Commerce president, also warned in Tribune Business that, at the current rate of progress, VAT’s implementation would likely be “chaotic” and non-seamless if the Government forged ahead on the January 1 target date.

The revised VAT Bill, plus accompanying regulations, guidance notes, a revised list of ‘exempt’ products and services and a new Tariff schedule have all yet to be released to Bahamian businesses and wider society.

Companies also need to know how to configure their computer systems and software, and how to interface with the Government’s system, and those with large inventories, pre-existing contracts and high accounts receivables will need the longest lead-in time

Describing the VAT Bill and accompanying regulations as being “in a very firm state”, Mr Rolle said the Ministry of Finance and its officials had finished their work “for all intents and purposes”.

It is the sign-off at the Cabinet/policy level that now appears to be delaying the process, with the Government having seemingly been distracted by its bid to legalise web shop gaming.

Mr Rolle, meanwhile, indicated that the VAT guidance notes would be “a living document” subject to changes that reflected any further amendments to the Bill and regulations.

“The policy decisions on the very fine details in the legislation will ripple through to what the circulated guidance notes look like,” Mr Rolle told Tribune Business. “The guidance notes, for all intents and purposes, will be a living document.”

The VAT regulations will also be subject to similar treatment. The Financial Secretary added: “The regulations are in a state to accompany the draft Act.

“Again, the regulations will have the opportunity for a small window to undergo some changes. They are in a form that can be circulated once the Government agrees the legislation. It’s a process that’s moving in parallel.”