EDITOR, The Tribune.

The following letter, written by businessman Godfrey Thomas to Prime Minister Perry Christie on February 21, is published below at the urging of several Bahamian businessmen who think that it should be shared with Tribune readers.

Hon Perry G Christie,

Prime Minister & Minister of Finance, Commonwealth of The Bahamas.

Dear Mr Prime Minister,

I am taking the liberty of writing this letter on the present issue of Value Added Tax which now confronts the government, the people and the business operators of The Bahamas.

Approximately six months ago, in a meeting which you requested with the wholesalers, I voiced my strong opinion on government’s ability to be successful in the implementation of a highly complex credit system of revenue collection.

Now, six months later, and just returning from Barbados (a country very badly damaged by VAT), I am even more concerned as a front line businessman. I have 40 years’ of experience in The Bahamian market, having over 170 Bahamian employees of all levels, and 40+ shareholders who hold me accountable for their livelihood, my mind will not rest until I express my gut feelings as to the onerous consequences if your government persists in its quest to enforce this regressive form of taxation on the Bahamian marketplace.

In my many and varied positions, from bank teller in Harbour Island, to commercial fishing in South Andros, to selling fish at Potters Cay Dock, as a wholesale salesman, manager of Nassau Agencies Ltd, and President of Island Site Development (a prime contractor), never in my 47 years of earning a living in this beautiful country have I experienced more concern for the future of our island nation. I want you to know that I wholeheartedly support the coalition against VAT.

There is a silver lining to this very dark cloud of VAT in that it has united the ethical and good businessmen of The Bahamas to push for change and assist your Government to increase the revenue collection in a better and far more effective way. It is obvious as the ocean is deep, that government has failed to effectively administer even the most basic revenue collections systems. There is no way of improving that record of failure with a credit system like VAT, which requires forensic accounting plus compliancy.

You and your government alone have one golden short lived opportunity to save for future generations, this damaged leaky ship of state on which we all depend for our livelihoods.

VAT will erode your stable tax revenue of organised and paying businesses to a sub-culture of non-paying non-contributing businesses analogous of the webshop culture we have now, eating at the very fabric of our economic stability. This tax will fall heaviest on the already struggling poor and will without question intensify the storm of crime in which we now live. I must further add, that the implementation of VAT will only benefit the government and people of the Dominican Republic, as it will enhance their tourism package as being one of the last non-VAT tourist destinations.

I humbly ask you and your Ministers to join with us in the coalition which wants to help restore a stable and viable future for all Bahamians and the future of those to come.

GODFREY THOMAS

Nassau,

February 12, 2014.

cc: Mr Michael Halkitis, Minister of State for Finance, Mr Kaalis Rolle, Minister of State for Investment Mr Ryan Pinder, Minister of Financial Services.