'We will not be bullied on VAT'

By SANCHESKA BROWN

Tribune Staff Reporter

sbrown@tribunemedia.net

THE GOVERNMENT of the Bahamas will not be “bullied or threatened” to postpone or cancel the implementation of Value Added Tax, Minister of State for Finance Micheal Halkitis said yesterday.

Mr Haikitis was responding to comments made by Super Value’s owner, Rupert Roberts, who warned that a 400 person lay-off may be “coming down the pipeline” across his various food retail interests unless the Government relents over its Value-Added Tax (VAT) proposal, Price Control, and other recent tax increases.

Mr Roberts told The Tribune that unless the Government responded to the industry’s cries with “quick action”, his supermarket chain’s first potential move would be to assess the future of its smaller, inner-city stores.

Mr Halktis said instead of “causing hysteria” persons in the private sector should sit down with the government and have an intelligent conversation.

“It sounds like he as a few issues other than VAT but let me just say though, taking away Price Control is not in the cards. We need to be able to have discussions about VAT without this kind of threat. The first reaction should not be ‘we may lay off people or prices will go up’,” he said.

“As a matter of fact, a lot of misinformation is being disseminated in the public, with these advertisements and stuff that are going around but I just want to encourage people to log on to the Government’s website and see for yourself what is the truth. Look at the VAT draft law and you will see a whole list of items that will be exempt; bread basket items and basic food items. You will see that the oil and chicken and rice and fish, you know, things that you use all the time, they are not going up, there will be no VAT on those items. This kind of talk is designed to frighten the Bahamian people and cause the government to retreat from its position. We know it is not a popular position but it is something that needs to be done and this type of talk will not deter us.”

Mr Halkitis said after VAT is implemented, the Price Commission will fall under Shane Gibson’s Ministry of Labour and National Insurance, and be responsible for ensuring that items that should be exempt from VAT will not increase in price.

The government plans to introduce VAT at a rate of 15 per cent on July 1.

However, Prime Minister Perry Christie has said that he can be convinced to change his mind on the matter.

Comments

proudloudandfnm says...

Look man. This is simple. Businesses will have to accommodate VAT, that takes people and resources and that costs money. Price increase.

Support services now will have to add VAT. Price increase.

Some items will go up due to VAT being added to final sale. Price increase.

Government needs to stop LYING TO US.....

Posted 4 March 2014, 11:20 a.m. Suggest removal

realfreethinker says...

They keep spreading the lie that prices will not increase on " BREAD BASKET ITEMS " Well they said the same thing when the new processing fees came online last year,but what they neglected to tell you is that when you pay that fees it catches everything on your entry.

Posted 4 March 2014, 12:22 p.m. Suggest removal

ohdrap4 says...

It is sad that the honourable minister does not understand that BREAD BASKET items are NOT price controlled, they are margin controlled.

The exemption list is a joke. I went to the website, looked at it. INSULIN IS NOT THERE. Some need insulin to live, at @ 90.00 a vial. The price of insulin has gone up lately, despite the duty free status AND price control.

And minister, you are getting fat. The diet starts the day after the election.

Posted 4 March 2014, 2:33 p.m. Suggest removal

JohnDoes says...

This government is too busy trying to make everything 'look' good when it really is not. This country is an unofficial dictatorship in the sense where they rather communicate only with business partners, appointed committees, and coalitions rather than the people who actually voted them in. We the people still do not have much clear information on how the Bahamas is going to implement VAT and manage it (despite the website), it all looks good but if they cant manage court documents or collect property tax, how is this going to effectively work? They are simply patting the shoulders of all Property Tax delinquents because they still dont know how to collect it. What happened to old $110,000+ delinquent VAT president, and what is his current status? How can Halkitis say 'we will not be bullied or threatened' when they are doing the same exact thing to us citizens with this implementation? They are rushing and forcing this on us because of their misappropriation of the Country's money. There is Cause & Effect. The VAT Cause is going to affect businesses to the point where they will have to down size obviously affecting products, prices, and employees. Price Control regulation is not being regulated. Prices are already high and we were told the lie that minimum wage in the private sector 175 and 210 in the public sector which I believe is the opposite and somewhat less. Crime will rise, Unemployment will rise, and wages will decrease. That is the cost of this implementation along with high business taxes, and an already slaved peoples. Anything else..?

Posted 4 March 2014, 11:25 a.m. Suggest removal

Bahamianpride says...

Stating that there is 550 million in uncollected taxes, then concluding Vat is the most viable option makes no sense. How about addressing competency, inefficiency, poor management or cost reduction measure or even collection enforcement methods before implementing new taxes or borrowing. Lastly if u had real free market capitalism there would be no need for price control, the market would take car of it through competition.. Tax & Spend is all they know..

Posted 4 March 2014, 11:27 a.m. Suggest removal

proudloudandfnm says...

Halkitis aint the sharpest knife in the drawer.

If a major business says it fears VAT and may have to lay off. GO SPEAK WITH THEM. Don't come out and vilify them man.

PLP really are starting to look more and more like communists....

Posted 4 March 2014, 11:42 a.m. Suggest removal

Thinker says...

Hmm, but government is allowed to BULLY the PEOPLE into VAT and other forms of taxation? I don't think government is in any position to THREATEN anything seeing as how they have not earned a dime of what they take from the People.

Posted 4 March 2014, 11:56 a.m. Suggest removal

proudloudandfnm says...

Halkitis also needs to accept the fact that the Lightbourn issue is significant. This nonsense about keeping him on the payroll to pay back 20 years of back taxes is ridiculous...

I tell ya man so far Halkitis has seriously undermined his own reputation. Prior to government he was considered a bright up and comer. Today he looks more and more like a fool. A dumb "mout could say anything" fool...

Posted 4 March 2014, 12:25 p.m. Suggest removal

ohdrap4 says...

> Halkitis also needs to accept the fact
> that the Lightbourn issue is
> significant.

Hey, hey, that is lightbourne with an E

(I read bahamas uncensored and now i feel smart)

Posted 4 March 2014, 2:25 p.m. Suggest removal

hj says...

lol

Posted 4 March 2014, 2:50 p.m. Suggest removal

TalRussell says...

Stop the masquerades cause the peoples done laughing at PLP's, reds and make believe greens too hard. Comrade Minister Michael, DPM "Brave" and PM Christie you three got's have some low massive hanging bullocks to think you can stand before the people of Bahamaland, alongside "self-confessed" tax dodger Ishmael as your VAT front man and expect anyone give your VAT message any respect. Don't you guys get it that, although no new tax introduction is ever going to be an easy sell, but if you had approached this first by attempting collecting the billions outstanding to the public treasury and with better long term planning, the public might have been more acceptable. Even the reds pretend they're totally against VAT but Hubert knew that even his regime had to generate more revenue through new and revamped taxes but still they spent billions while failing to doing anything to collect outstanding taxes, and millions in outstanding BEC charges, accept it never did stop them from cutting off poor peoples lights for not paying a couple hundred dollars on they BEC bills. You know what. Both the PLP and the FNM can go take a hike as far as I am concerned. Bahamalanders new an all new political system and make damn sure it be far removed from anything or anyone wearing a gold or red shirt, not even a "pretend it's green" shirt that is not much more than a different shade of red.

Posted 4 March 2014, 12:26 p.m. Suggest removal

242in404 says...

Insanity is doing the same thing and expecting different results. The only thing negative you have to say against Green is public flogging? That should be the least of your worries. It's time Bahamians try something "new". How can anyone intelligently question something they've never given a chance?

Posted 4 March 2014, 5:24 p.m. Suggest removal

proudloudandfnm says...

Tal have to admit. That's the first post of yours that I completely agree with.

Unfortunately there is not other choice. So what do we do?

Posted 4 March 2014, 12:39 p.m. Suggest removal

TalRussell says...

Comrades I just ain't prepared to buy into keeping a "self-confessed "tax dodger' as your lead VAT spokesperson, or calling for the "public flogg'in" of convicted citizens in Rawson Square, or having anything to do with returning the former red shits regime back to power. Comrade it all starts by doing what I've decided i will do, as of this very hour. Turn my back completely away from ever again being tricked into listening to any message from anyone who walks and quacks like it has even the most remote possibility of having any association with anything or anyone who is sporting one them gold, red or a different shade red, green shirt. Comrades I say, NO MORE!

Posted 4 March 2014, 12:52 p.m. Suggest removal

B_I_D___ says...

As far as speaking with them, there have been numerous 'meetings' with them, they don't want to listen, it's a one way conversation, absolutely none of our concerns have been addressed, or even given a clear answer as to how it will be handled. They are going to jam it down our throats whether we like it or not and our country will go into a complete tailspin and further recession. It's less than 4 months away and we have been given no information or specs as to how we are going to link up systems with there tech department, what types of reporting is required...NOTHING...we are talking...we are asking...they just keep saying the information will be forthcoming. Completely worthless and useless, and if this is how they are going to 'roll out' some massive tax plan with little to no information or concern, how do we expect it to be actually governed once it is in place. ZERO confidence in anything they are doing or saying at this point with respect to having productive discussions and dissemination of information.

Posted 4 March 2014, 1:17 p.m. Suggest removal

jlcandu says...

B_I_D__

The talking to the government has to stop -- they are only playing with the Coalition. The Coalition and the Bahamian people need to rally together and tell the government in no uncertain terms that WE WILL NOT PAY VAT. Period. The business community will not collect it nor charge it.

Consumers need to stop paying their property taxes. Since the DPM admitted that they don't pay much attention to RPT and Halkitis stated that they will not prosecute people in properties that are occupied, then why should any Bahamian pay their RPT until the idiots in government actually pay theirs.

This fiddling around and pandering to the government is a waste of time. I say bring it in on if you dare. We as a people need to do what the Turks & Caicos people did -- protest the government and say a resounding, united "NO" to VAT.

Posted 4 March 2014, 1:28 p.m. Suggest removal

TalRussell says...

The ladies will have they own personal option whether to wear or not wear they bras. We march and we publicly ripoff we no longer affiliated with any political party T-shirts. Comrades, if only, all political colour shirts would declare that the people have decided we can make much better use of space at Rawson Square, if we all peacefully marched down there to the people's property, where we could all stand over some kind makeshift grave, while ripp'in off all of we different colours political party shirts and erect a permanent tombstone which might read: "Final Resting Place Cemetery Of Da Gold's, Red's And A Few Make Believe Green's Shirts" Comrades if nothing else would grab the attention these politicians in and out government, the sight some them over-sized boobs might do the trick?

Posted 4 March 2014, 1:40 p.m. Suggest removal

B_I_D___ says...

What id they call all the unrest in the middle east...the arab spring or something? Maybe it is time for a Bahamian Spring? A coup...overthrow the current government...show them what bullying is all about.

Posted 4 March 2014, 2:09 p.m. Suggest removal

hj says...

On the contrary,it is the government that bullies people into VAT. These politicians could care less if people loose their jobs or the cost of living will rise for everyone. The saddest part is that they are too incompetent to see that VAT won't simply work.

Posted 4 March 2014, 1:41 p.m. Suggest removal

nationbuilder says...

All this moron Halkitis is showing is what has always been true - the government does not truly want the input of Bahamians, they are just pretending to want it - but when Bahamians actually give it, then the government comes out with threats. Bastards.

Posted 4 March 2014, 1:44 p.m. Suggest removal

The_Oracle says...

It is going to take time for the private sector and citizen to get beyond pandering to Government and politicians,
it is all they know, and it is what has worked for them for decades.
Unfortunately, time has run out, and we are still only at the point of a few individuals speaking out.
Consider, the few that are speaking out would have considered it suicide to do so before now.
Most still believe that things will change when Hubert comes back or the FNM find their way with new leadership somehow, and all this will go away.
How wrong they are.
If VAT does not produce the increased revenue they want, (and claim to need)
Income tax will follow, and it will be based on the information gained by VAT reporting requirements.
Note the penalties for non compliance, simply an attempt to prevent the creation of more Ishmael Lightbournes.
All Government Departmentpersonel have, through self preservation, not exercised their abilities to collect revenue, fearing the political backlash.
The Police officers on the street are no different.

Posted 4 March 2014, 1:51 p.m. Suggest removal

nationbuilder says...

**"It is going to take time for the private sector and citizen to get beyond pandering to Government and politicians, it is all they know, and it is what has worked for them for decades. Unfortunately, time has run out, and we are still only at the point of a few individuals speaking out."**

VERY TRUE

Posted 4 March 2014, 3:32 p.m. Suggest removal

TalRussell says...

Comrade BID you're not seriously asking us picture in we mind's what pulling off some kind of a Bahamalnder styled coup d'état would look like? In the meantime while mulling that idea over let us never ever believe the Bahamaland we once knew and loved best is somehow beyond our peaceful reach. She exists and wants us to come back to her, peacefully.

Posted 4 March 2014, 2:37 p.m. Suggest removal

B_I_D___ says...

You can have a peaceful coup...doesn't have to be violent. :-)

Posted 4 March 2014, 2:43 p.m. Suggest removal

concernedcitizen says...

When 1 in 4 people in the work force are employed by the Government you have to keep borrowing and taxing ,,GUESS WHAT IT REALLY IS THAT SIMPLE

Posted 4 March 2014, 2:39 p.m. Suggest removal

realfreethinker says...

concernedcitzen thats the elephant in the room but the public service is the sacred cow cant be touched. Until they address the spending ,wastage and corruption, I dont care how much tax they raise it will never be enough

Posted 4 March 2014, 2:49 p.m. Suggest removal

sheeprunner12 says...

THE GOVT DOESNT HAVE TO BULLIED............IT IS THE BULLY

VAT IS BAD FOR US......................... UNDERSTAND???????????!!!!!!!!!!!

Posted 4 March 2014, 2:40 p.m. Suggest removal

wave says...

As a country you have little to no choice here. If nothing is done to lower your debt, the US will devalue your dollar. They will not allow your country to remain on par with the US greenback. The real threat is the fox is watching the hen house, your PLP government will rape that Vat tax valt like never before, remember all these old PLP guards are looking to build their own retirement fund.

Posted 4 March 2014, 2:44 p.m. Suggest removal

nationbuilder says...

The dollar will be devalued regardless - and that is the truth people keep lying about.

Posted 4 March 2014, 3:35 p.m. Suggest removal

ohdrap4 says...

The govt is betting that the masses don't listen to the talk shows or read newspapers.
The masses also will not be quick to condemn tax dodgers because of the mote on their own eyes.

The masses do not have the foggiest idea of the magnitude of the problem.

Darrold miller had an accountant guest today.
A rather inarticulate man, who, on expounding on the need for new taxes, said the govt was introducing "Pecifically", VAT. HMMM, I would not hire to do my vatting anyone who says "Pecifically"

He went on to state that there were 500 thousand dollars outsanding in property tax. Darrold, corrected him, there were 50 million dollars outstanding.

Have no fear, not even the accountants know their place values...

Posted 4 March 2014, 2:45 p.m. Suggest removal

hj says...

You should hear the other fairy tale they are selling now. Don't worry if Roberts shuts down because Wal Mart will be moving in. More jobs people. Wal Mart is simply waiting for Roberts to close down

Posted 4 March 2014, 2:54 p.m. Suggest removal

ohdrap4 says...

OMG
And the silly man on darrold miller this morning, also said that, come july 1st, where a business charges VAT, your dollar would be worth 85 cents.
But not in a store that is not registered for VAT, there your dollar is stiill a dollar.
Darrold rushed to say that we must all buy from over the hill.

Posted 4 March 2014, 3:16 p.m. Suggest removal

TalRussell says...

No legal protection of an "alleged' tax dodger has be used when the man he-self has publicly confessed before thousands. PLP must know that the only something sure about VAT is, it is now being used by this government as the most lamest of of excuses as a reason to keep one man employed, so he might or might not repay the taxes he should have paid from 20 years ago. Comrades it's hard for anyone with even just an once of common sense to accept, that it is the party of Comrades Lynden Pindling, Milo Butler and Clearance Bain who is the political party now going after the few remaining dollars of the poor. That VAT was never designed by the PLP to put money in the people’s pockets but to take it out their pockets, making it even that more difficult they can eat and live. PM you can argue back and forth all you want with a "self-confessed" tax dodger at your side, until 2017 rolls around, when the people will demonstrate just how damn tired they grew with you, your cabinet colleagues and House MP's.

Posted 4 March 2014, 3:11 p.m. Suggest removal

B_I_D___ says...

What boggles my mind as well is that Ishmael was a partner in a major accounting firm...Price Waterhouse...no small name. He would have been paid dearly as a managing partner, he had funds to pay the tax, but didn't...but he is a top accountant...and just ignores paying taxes. Yet we are going to have to depend on these same accountants to keep our books in balance and check on our VAT contributions...they are also the ones at the end of the day after assessing your business with an audit that come up with a total to base your business taxes off of...and yet the very individuals working up your 'taxes' for you, just don't pay the taxes themselves. I would be curious to have each law firm and each accountancy firm come out with a statement that none of their managing partners are behind on any of their taxes owed to government. Maybe that should be a prerequisite for practicing law or for being a chartered accountant...you need to lead by example and have no outstanding bills, otherwise you cannot practice what you preach!!

Posted 4 March 2014, 3:29 p.m. Suggest removal

sheeprunner12 says...

I suggest that all right thinking PLP MPs jump off the Perry ship...it goin down fast

Posted 4 March 2014, 3:25 p.m. Suggest removal

GQ says...

Question:

Have any in the current government's cabinet ever been successful in business that was not due to their political affliation?

Minister Halkitis your name just surfaced since 2012 please check and see how long Mr. Rupert Roberts has been a very successful buinesssman.

Mr. Chrisite, I thought you believed in Bahamians I am afraid that was just an election ploy because you now want to bring in foreigners to take over the food business.

Shame on all of you.

Posted 4 March 2014, 4:23 p.m. Suggest removal

B_I_D___ says...

They will say ANYTHING to sway the dumb ones...apparently...sad thing is it works.

Posted 4 March 2014, 5:49 p.m. Suggest removal

The_Oracle says...

In reality, we back into almost every challenge we are faced with.
Being the only former British colonies that has not outright failed at self governance, it is now just a matter of time.
Our mere proximity to the U.S. is probably the only thing that has saved us so far.
As to Mr. Halkitis, he cannot be taken seriously, his credibility is shot, his arguments feeble.
He is no doubt the fall guy, poised to have VAT hung around his neck when it fails or paralyses the economy.
He deserves it too.
Quite frankly, if it takes the implementation of VAT to be rid of the PLP,
it may well be worth it!

Posted 4 March 2014, 5:52 p.m. Suggest removal

sheeprunner12 says...

ANSWERS TO GQ

1. Perry used to be a second rate lawyer, Jr to HAI
2. Halkitis is a lukewarm accountant............ thanks to his wife & politics
3. Khaalis Rolle made a name working for the Symmonettes
4. Ryan Pinder......... thanks to Papa Marvin and US

THATS THE PLP FINANCIAL GURUS ............................... "D" GRADE

Posted 4 March 2014, 6:08 p.m. Suggest removal

asiseeit says...

This country is headed down a slippery slope and these politrickans only care about staying in power no matter what the cost to the Nation. Get it right people The political class in this country and their cronies will destroy our Bahamas!

Posted 4 March 2014, 8:23 p.m. Suggest removal

sheeprunner12 says...

So true ............................. the political class today look alot like the Bay Street Boys of old only different colour, race and names. We are heading for a second Majority Rule showdown...................................... like the storming of the Bastile

Posted 4 March 2014, 8:31 p.m. Suggest removal

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