By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

PRIME Minister Perry Christie yesterday remained confidently optimistic about government’s implementation of the Value Added Tax (VAT), which came into effect yesterday.

As of January 1, all persons and businesses wishing to purchase or import goods or services will be charged an additional 7.5 per cent tax on their bill, essentially raising the cost of everyday goods and services for Bahamian residents.

At the New Year’s Day Junkanoo Parade yesterday morning, Mr Christie, also the minister of finance, said the country is “ready” for VAT, and dismissed any need for worry over the new tax regime.

“Any one who has questions, we will be able to address those questions,” he said. “We will work with people. This is all about ensuring that there is harmony in the implementation of this new tax in the Bahamas, and part of an overall taxation reform that we’re dealing with. It’s not going to go away.

“We’ve brought in New Zealanders to audit what we’re doing, to review what we’re doing, to talk to the Bahamian public. New Zealand is the model for VAT throughout the region, and we’ve brought their people out so they could tell Bahamians that this is going well, and what is happening is being done properly.” 

After months of heated parliamentary debate over the potential negative effects the new tax regime would have on Bahamian citizens, VAT legislation was passed in late August in the House of Assembly.

Before that, concerns were raised about the effect of VAT on the poor from both sides in the House. There was criticism from backbenchers of the PLP, notably Marco City MP Greg Moss, who spoke out against the government’s decision to forge ahead with the implementation of VAT.

Recently, Shadow Minister of Finance Peter Turnquest criticised the government for failing to announce or address their plans for a Social Services safety net because of VAT.

He said the government had no plan to provide relief to Bahamian families who are already suffering from a continued slow economy. He added that the government had “rushed” VAT and is “not prepared” to lend assistance to those who really need it.

Bahamians also took to social media recently to lament the implementation of the new tax and the effects it now has on everyday goods and services, such as the prices for movie tickets and purchasing gas.

Mr Christie yesterday acknowledged the initial hardship VAT may present to Bahamians, but remained steadfast in his view that the government has things under control.

“There are bound to be glitches in everything you’re doing (that’s) new,” Mr Christie said. “The most important thing is that the government doesn’t have a mentality of imposing something on people irresponsibly, but one in which we will work with persons towards ensuring the full understanding of the regime, and helping persons to do whatever is necessary to conform with the law.”