Political spending is a run away train ........... deficit spending has become contagious in most countries today. There are just too many unrealistic dreams, expectations and promises that can only be met through deficit spending ............ spend now and the future generation will pay. Its poor national development planning.

Hope Felix Stubbs can speak into the ear of the PLP and FNM politicians as they craft this long term Bahamian National Deveopment Plan

This is one promise that the government MUST carry through on. If they don't the "Rating Agencies" like Standard & Poor's may down grade the country's rating to "junk bond" status.

but Perry and Bernie need a new house first...

If the politicians (current and future) would only steal 90% of what they do now we would be in good shape. I propose that they pass a bill stating a maximum amount of money that any government can **legally** steal or accept in bribes. Let's say we start at $300 million per year. That should keep the politicians' living standard **roughly** where it is now. And then we can think about reducing that amount each year until we get a **majority** of ethical politicians in government who **may** consider making stealing and bribery a crime. Is that too much to ask???

If the average consumer would just boycott paying bills for one month ........ that will be the biggest political statement that can be made to this government ......... let us exercise our POWER of the purse ................. Perry can only spend what we give him.

Exerting pressure on a poorly produced dry orange only crushes it, nothing more.

VAT TIMES THREE

Show me just one thing gov's have done right and I will say no more that their incompetence is not a disease.

Some items and services are taxed only 7.5% but for most commodities and services 7.5% is a trick! Try 7.5% x 3

1. At Bahamas Customs, 7.5%
2. On the shelf, 7.5% (and larger margins)
3. At the casher again, 7.5%.

If you use a credit card in the store it will be taxed VAT two and a half times.

Auto repairs and parts are charged VAT and VAT is charged on top of VAT.

Most of us won't recognize the damages that VAT will inflict on our incomes until some time to come.

VAT is to improve this country credit rating by helping to reduce our credit deficits. Makes nonsense. VAT is a deficit and it will increase the countries deficits by increasing our personal deficits.

Exerting pressure on a poorly produced dry orange only crushes it, nothing more. We will all experience this damage months from now.

> Most of us won't recognize the damages
> that VAT will inflict on our incomes
> until some time to come.

true. however, I see my coworkers already complaining about this and that price, and are starting to feel it.

the customs duties reductions could at best maintain the price, BECAUSE THE VAT IS CHARGED ON DUtY. Even if the merchant does not markup on VAT, a 15% reduction on duty, generates about 5% reduction on costs to the merchant, and when vat is charged on the final price, the price will remain the same. ON A SUNNY DAY, for products which were formerly duty free, or which duty reduction is 15% there were immediate increased.

I have always said that, before vat, if you buy a hot dog machine you paid duty once. Now the duty might have been slightly reduced, but, adding vat, the hot dog machine costs the same . PLUs, PLUS, the govt will collect each time you sel a hot dog well into the future, which it did not do before.

Allocating monies from one sector of the economy, from the people to another sector of economy, to the deficits is a very risky, poor and irresponsible maneuver especially when there is no preparations
made to compensate in advance.

Here is an example: A flood is coming the dam is breaking and we need to hold it back. The only material are the farms. The only thing is to dredge the farms to hold back the dam. The crops are not ready but there is no time to wait for food. Maybe we'll hold back the floods, just maybe, but we'll have no food and no farms for sure.

So, we figured out where to take money from and when there is no more there, but left with a greater challenge, the question remains, then what? Don't tell me, I already know, there is no preparation here either.

Exerting pressure on a poorly produced dry orange only crushes it, nothing more.
Just squeeze the damn orange anyways, a typical attitude of all governments everywhere.

Hmmm!

This guy Bowe should have been opposing the introduction of VAT from day one, but instead chose to be one of its more vocal proponents. Now he tells us that he has all along been counting on our "spend spend" government (no matter whether it be PLP or FNM led) to cut spending by 10% for VAT to be successful. It's obvious the very talkative Bowe has about as much common sense as a frail small donkey willing to offer a free ride to Loretta Butler-Turner or an extra large conch that can't make up it's mind whether it wants to be diced into a salad or simply scorched!

tedb4bz VAT is only 7.5% total at point of retail, except in cases of margins being increased.
In other words, the aggregate is 7.5%, collected at each stage of a value being added.
I fear too many people do not understand VAT, including business people, which is causing the multiplier you speak of.
Yes there will be inflation, but SOme duty rates have dropped, with all duty rates to drop by 2025.
WTO compliance!
EU-EPA trade agreement Compliance!

One also has to take into effect that in many instances the Business License fees have doubled. Cost of permits have gone up. Customs charges for clearing goods has gone up. All of this will increase the cost of the goods and services and none of this is vat recoverable. There is a direct cost to the business associated with the administration of Vat.

And, yes, some customs duty has come down, but don't forget that customs then adds 7.5% to the duty that it just charged so a $100 item then get charged $50 duty and then 7.5% is charged on $150 for a total of $161.25. So unless the duty dropped more than 11.25% the cost has gone up.

This means that, when you add the 7.5% Vat to all of the above there is an increase of between 10% and 12% to the consumer.

I agree Economist, costs have gone up significantly, especially shipping, port fees and Licensing fees,even power.
Also in the food chain particularly you may well have incremental increases at every stage, import, wholesale, retail in addition to VAT.
Here we are 5 days from the beginning of the reporting remittance phase and the E-method of filing is not ready, and the forms are clear as mud anyway.
I am also led to believe quite a few Government minister owned businesses have not implemented VAT yet!
All those warning letters and fines must be going out as internal Government memo's!
Not exactly confidence inspiring, but then, government never is.