Thursday, February 5, 2015
By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
MARCO CITY MP Greg Moss yesterday said he has a problem with the way value added tax (VAT) is being calculated on goods imported into the country, accusing the government of placing a “tax on a tax” by adding VAT on customs duty.
He made the comments as he gave his contribution to the National Tripartite Bill in the House of Assembly, which seeks to foster better relations with the government and trade unions.
Mr Moss criticised trade unions in the country for being more concerned about “making money for working less hours” than “protecting their members and lending their voices to nation building”.
He questioned why they have not been more vocal against VAT and other issues that have raised the cost of living for the working class.
“I am a bit concerned that they have been quiet,” he said. “I am very concerned in the way VAT is being calculated on goods entering this country. The government has put out some papers on it and it is there for everyone to see. You bring in goods; VAT is not on the goods, their cost, their transportation or the insurance on entering the country anymore. VAT is on customs duty. So it is a tax on a tax. Where is the voice of the trade union?” he asked.
He said trade unions today are nothing like the movement in the past. He said unions have been silent on the most pressing issues in this country, including VAT, crime, home foreclosures and the outsourcing of jobs and minimum wage legislation.
He accused the unions of “compromising” their members for “political favour and gain.”
“It impacts your membership as much as it impacts our constituents,” the Progressive Liberal Party MP said. “Why are we not hearing about that? And if you take an average tax like 35 per cent tax across the board on most goods and you charge VAT as a tax on a tax, VAT is not seven and a half per cent but close to 10 per cent. Why are we not hearing this? Will the union do anything before it becomes a crisis? This is not the union (movement) of the 40’s or 50’s or 60’s. They were not just about the exercise of saying ‘I want more money for less hours’ but they were about the business of nation building and understood their contribution to that process.
“Why is it that we are comfortable increasing taxes on the people who are the most vulnerable and then as an after thought say ‘Let’s talk about increasing their income’. Why is the union silent on it? Where is the unions’ voice not just on minimum wage but all these injustices? Instead it seems that the unions have become so political that they have become paralysed and have compromised the members for the political loyalty.”
Mr Moss challenged the unions to represent their people and not their “political loyalties”.
“You are not politicians, you are trade unionists. If you want to be politicians get elected to this House. When you are out there you do your job and we will do ours. You can only serve one master at a time.”
Comments
Economist says...
I may not always agree with Mr. Moss but he is doing what is needed. He is trying to get people to think of what is best for The Bahamas, regardless of party politics.
We need to question our values and what we are doing to create a better country.
He is opening the doors for debate. Our country is in a sorry state, and the problems can only be solved if we all look at them, debate them so as to open peoples minds, come to conclusions, and then tell our politicians to act on them.
Well done Mr. Moss.
Posted 5 February 2015, 1:42 p.m. Suggest removal
Hogfish says...
Yes Yes Yes!,
I've been saying this from day one. !
Thank you Mr. Moss. Good Job!
Posted 5 February 2015, 2:25 p.m. Suggest removal
jackbnimble says...
I also agree. I read the new booklet that Customs put out for the 2015 Customs duties and could not believe it. They are actually taxing the tax. It's ridiculous. Either collect a customs duty or VAT but it should not be both! It's highway robbery!!!
Posted 5 February 2015, 3:20 p.m. Suggest removal
ThisIsOurs says...
Agreed. Everyone is entitled to align themselves with a particular party philosophy but at the end of the day, all philosophies should seek the good of the people,
A gentleman asked Leslie Miller about the PLP's unfulfilled promises three years after the gold rush pie was sold to the Bahamian people. Mr Millers response basically decried the bad economic environment and asked for understanding.
My question is, how is it that everyone else in the country is suffering in the bad economic environment EXCEPT THE members of the ruling party in the HOA? How is it, that in these sad times they seem to flourish? Becoming millionaires off of a 60,000 annual salary? With bills and VAT.
The PM needs to think seriously about what happens to this country if he dies tomorrow. In whose hands will he leave his daughter and granddaughter's future?
Posted 5 February 2015, 2:36 p.m. Suggest removal
B_I_D___ says...
Plus...what was NOT taxed before...your breadbasket items that are price controlled, are now taxed thanks to VAT.
Posted 5 February 2015, 3:38 p.m. Suggest removal
TheMadHatter says...
Thank the lucky stars that breadbasked items ARE being charged VAT - because there are "some people" in this country who ONLY eat breadbasket. They export their extra money that they could buy other stuff with. They hardly pay any taxes and many pay zero taxes. Are you happy paying their share?
Posted 5 February 2015, 7:59 p.m. Suggest removal
TalRussell says...
Comrade MP Gregory, may I point out another VAT nightmare awaiting government employees that must be urgently addressed.
Just you wait for the tidal wave of all hell screaming break loose, once the government employees start having VAT added to their existing over-stretched to and beyond the affordable limits of their finance and loan payments obligations, committed to through payroll deductions.
A pretty scary thought considering when you start to have another 7.5% deducted from your 30% left-over after current payments obligated paychecks, you ain't being left much money pay all your other bills and expenses.
But despite his knowing all this, the PM has no issues allowing the people's public treasury to continue acting as payments collectors for banks and finance companies.
Posted 5 February 2015, 6:31 p.m. Suggest removal
John says...
Customs has been taxing on taxes for years. Whenever you bring a receipt from abroad and it has tax on it you will have to pay customs duty on that tax. Now you have to pay Vat on customs duty and any other charge from customs. One time ago when you brought anything from Brandsmart they would put the tax on your invoice but once you send them a document showing the items were exported they would refund the tax. But you still had to pay Bahamas customs on the refunded tax. And they want to blame the merchants for the high prices
Posted 5 February 2015, 10:09 p.m. Suggest removal
Alltoomuch says...
One time I had to pay tax on insurance I'd taken out on a camera!! It was listed on the receipt.
Posted 11 February 2015, 11:17 a.m. Suggest removal
Alltoomuch says...
and I still can't get over having to pay VAT on the surcharge on BEC bills!
Posted 11 February 2015, 11:18 a.m. Suggest removal
asiseeit says...
Look no farther than gas. Government taxes the hell out of gas and then you pay VAT on that. Legalized thievery by the Bahamian Mafia, better know as the government!
Posted 11 February 2015, 2:18 p.m. Suggest removal
SP says...
Another unfair crooked move by government is when merchants importing i.e. cars for resale, (1st) VAT is paid to Customs.
When the merchant sells the car, the customer pays (1st) VAT on the purchase price.
Then government expects the merchant to pay (2nd) VAT again on the same sale at the end of the quarter.
Where the hell is the merchant supposed to find another 7.5% to government a second time?
Please don't tell me government will reimburse the second VAT at quarters. They are totally disorganized and the so called "reimbursement" will NEVER happen.
They have created an unnecessary, complicated accounting nightmare greatly inconveniencing merchants.
Simply remove VAT from Customs and have merchants collect and forward the stupid VAT at quarters end.
Posted 11 February 2015, 3:32 p.m. Suggest removal
duppyVAT says...
Yep ............. we were promised VAT with reduced/no customs duties. We got VAT and customs duty .................. thats PLP having their cake and eating it too.
But what will HAM or Bran do???????????????????
Posted 11 February 2015, 9:06 p.m. Suggest removal
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