‘VAT was increased by 60% but the VAT revenue was only up by 19%.’ Talk to any business owner outside food stores and they will tell you that sales are down by as much as 30%. And business license fees are down bro confirm this. Increasing taxes when there is no real growth in the economy and consumers were already spending all their disposable income means the new tax money has ty come from some where. And so if spending continues to decline in the next quarter, government will not realize the increases in revenue it anticipated. Then come January, business license fees will also decline, not only because there will be store closures but businesses still in operation will be generating less revenue. And these two ‘winter’ quarters should be the time government should be seeking to maximize its tourism and revenue to external sources. To seek more tax incu in the short term will definitely kill the economic goose.

So they should of started the VAT at 15% as planned.
Just blame Christie for caving in. Problem solved.

Anyone still remember the original reason for VAT? You know, to pay down the debt. Not only has all the VAT revenue been wasted by both governments, but they also need to increase the rate to pay for .....errrrrr....... anything but the debt.

The original reason for VAT was tax reform where customs duties and stamp taxes would be replaced by VAT in preparation for membership in the World Trade Organization. The WTO considers customs duties barriers to trade. But rather than eliminate Customs duties or gradually reduce them as VAT was introduced, then increased government kept both taxes running simultaneously. So imagine when customs duties are totally eliminated. VAT may have to go to 25% for government to realize the current level of revenue. Especially if they do not grow the economy.

Carry ya lazy self and read them news papers them. . .yes. . .even the journal. . .the business sections show that yinna deficit is down by 50%. . .and VAT increase is only by 19% so far!! You issa PLP aye?? Yinna don't like to read anything that een gat a yellow cover hahahahahahahahahahahahahahaha!

It is like a vehicle on the side of the road that has run out of gas. Rather than send to the gas station for gas, you take the last money you have and pay someone to wash the vehicle.

The comment above was not intended for the current government. Many believe that Hubert Minnis is sincere in his efforts to set this toppled government right side up again and reduce its Humpty Dumpty (Gussimae) size to one that is more fit and trim. And sometimes we grow impatient and forget how difficult and drawn out the process is. Financial problems really started in this country in 1973, when governments were giving away everything of value to foreigners and borrowing like a drunken sailor. even as a schoolboy one could not figure out (back then) why so many concessions were being given to hotels to accommodate tourists, to establishments that entertained them, and to cruise and airline companies who brought them here. Bahamians, who were barely surviving, were subsidizing the vacations of tourists. And millions, ok, billions were being borrowed. Now the chickens have come home to roost. And only Bahamians here to feed em.

John, your overall point is well taken. However, just for your edification, the concessions policy that exists today is actually a relic of Sir Roland Symonette/Sir Stafford Sands, et al (well before 1973). Pindling merely continued with what was in place. Even the most sycophantic UBPs/FNMs/PLPs agree on this point. In fact, new-FNMs (read: old UBPs) still like to rattle the cages of the PLP by reminding them that, despite the claim of independence and a better day for Bahamians, we (i.e. The Bahamas) still utilize one of the UBPs primary policies. Though I take your point that the policy should be revisited and even abolished, if necessary.

So what I'm hearing under the last administration we beg to find out where the VAT money went.. now under this government we know where it went and we still not happy, maybe they should do like the last government... don't say a word!!!

This the person who want to run this nation with BD? Talk about dumb and dumberer. . .I gern ta kick rocks. . . I wonder who painting they house now.

And that is the sign of economic constriction.
VAT increase added to the threatened Heath Insurance TAX (make no mistake, the compulsory "contribution" that by their own words "shares" the burden.
creating uncertainty/ instability seems to be their forte.

Economic contraction is a decline in national output as measured by gross domestic product. That includes drop in real personal income, industrial production and retail sales. It increases unemployment rates. You mean eco. contraction. . .not constriction. . .which you cannot be right because IMF, with the same information you are using, predict 2.52% increase. . . this fiscal period! The creation of instability is in the heads of some op-posers. . .and of course Tal, bird and the PLP!!

Will this be the focus of the so-called FNM Conclave this weekend????? ........HMMMMMM

Fish .......... cut bait ......... or get the hell out the boat (to quote SLOP)

Hahahahahahahahahahahahahaha. . .organizations does have them "conclaves" . . . or should I say "night of the long knives" meetings? But I say "lee them fellas dem alone". . .them fellas dem providing "fire under they boongy" services. . .services the PLP can't provide. But we know what the meeting is all about. . . but "runnin them" outta the party will look lame and petty!! Every man is free to speak. . .free to make an ninny of himself. . . get petty if he likes. . .BUT LET HIM SPEAK!!

Hahahahahahahahahahahahahaha. . .organizations does have them "conclaves" . . . or should I say "night of the long knives" meetings? But I say "lee them fellas dem alone". . .them fellas dem providing "fire under they boongy" services. . .services the PLP can't provide. But we know what the meeting is all about. . . but "runnin them" outta the party will look lame and petty!! Every man is free to speak. . .free to make an ninny of himself. . . get petty if he likes. . .BUT LET HIM SPEAK!!