1.VAT registration is frightening as you are required to disclose your bank account numbers.
2. It is physically impossible for businesses collectively to change over a billion items of inventory to VAT Inclusive pricing.
3. Invoice software will also need to be amended to generate VATable invoices which show VAT Exclusive pricing for businesses wishing to recover VAT on inputs.
4. If we are challenged collecting centrally administered customs duties and real property taxes how on earth will we get a good compliance rate with 8,000 business collection points?
5. No country that has recently implemented VAT has been able to reduce government spending or debt. Look at Barbados, in 2010 they increased VAT to 17.5% and last year they cut the civil service by 3,000 people. Now they are in need of an IMF bailout.
6. Administration PPP (Public Private Partnerships) economic strategies will not provide growth. Look at Venezuela, Argentina and Equador for numerous examples of failed PPPs. Venezuela has the largest oil reserves in the world yet the county is teetering on default.
But all of this is irrelevant to the political-economic-social directorate (which crosses all political affiliations) as they are at the apex of the economic pyramid and benefit from the current economic system.
The oil cartel ownership structure with its deep business, political and financial connections will ensure that the residents of this polluted area will not be relocated regardless of any cancer cases or the results of any environmental studies.
This would never occur in a developed country as there are environmental laws to protect citizens.
Please see article below on Barbados. They recently implemented VAT and it didn't bring down the debt. The extra money from VAT can go to help the newly created poor.
We have a safety net. We can go to IMF for a loan if our debt gets up to 100% of GDP.
Barbados Seen Needing IMF Help Amid No Growth, High Debt 2014-10-14 14:06:47.684 GMT
By Aleem Khan Oct. 14 (Bloomberg) -- Barbados business leaders and economists say the Caribbean island should seek an accord with the International Monetary Fund as the government struggles to spur an economy with one of the world’s heaviest debt burdens. Efforts by the government to trim the public sector by firing 3,000 workers and reining in spending failed to spark growth in the first half of the year in a country with a debt load equal to 96 percent of gross domestic product. That prompted the Barbados Chamber of Commerce to say the government should consider talks with the IMF.
Excellent points John and well researched. However, the administration can't reduce expenditure as there are so many poor people that need jobs, money, healthcare and education. The administration can't increase transparency (e.g. BEC sale and how they tried to sell BTC during their last administration) for obvious reasons. It can't repay the nation debt because it is too big. It can't stop the waste and leakage for obvious reasons again.
We are still investment grade so we can continue to borrow at good rates. So the debt must and can keep growing. I think we will be OK through 2020. After that hopefully the oil revenues will kick in and we can pay off the debt altogether.
We need to build proper housing and get the people living in Shanty Towns into them. Also we need to turn on the lights and running water for all Bahamians so we can keep ourselves clean.
Also we will be drilling for oil which will makes lots of money and diversify the economy. And don't forget stem cell research which will start up a whole new biotechnology industry. Wow...that's 3 new industries if you include numbers.
Hopefully the revenue collection from VAT and gaming taxes will reduce the national debt and pay off for some of the administrations project cost overruns.
VAT, in essence, will make 4,500 businesses revenue collection agents for the government. I think all of these companies will be honest and pay over to the government the revenue they collect.
We should expect a big windfall of taxes from the legalization of gaming.
Nothing to worry about, all will be fine. Lets give them more time to sort things out.
observer2 says...
1.VAT registration is frightening as you are required to disclose your bank account numbers.
2. It is physically impossible for businesses collectively to change over a billion items of inventory to VAT Inclusive pricing.
3. Invoice software will also need to be amended to generate VATable invoices which show VAT Exclusive pricing for businesses wishing to recover VAT on inputs.
4. If we are challenged collecting centrally administered customs duties and real property taxes how on earth will we get a good compliance rate with 8,000 business collection points?
5. No country that has recently implemented VAT has been able to reduce government spending or debt. Look at Barbados, in 2010 they increased VAT to 17.5% and last year they cut the civil service by 3,000 people. Now they are in need of an IMF bailout.
http://www.bloomberg.com/news/2014-10-1…
6. Administration PPP (Public Private Partnerships) economic strategies will not provide growth. Look at Venezuela, Argentina and Equador for numerous examples of failed PPPs. Venezuela has the largest oil reserves in the world yet the county is teetering on default.
But all of this is irrelevant to the political-economic-social directorate (which crosses all political affiliations) as they are at the apex of the economic pyramid and benefit from the current economic system.
On Government to miss VAT registration goal
Posted 26 October 2014, 8:23 a.m. Suggest removal
observer2 says...
I agree, nothing will happen.
The oil cartel ownership structure with its deep business, political and financial connections will ensure that the residents of this polluted area will not be relocated regardless of any cancer cases or the results of any environmental studies.
This would never occur in a developed country as there are environmental laws to protect citizens.
On Health concerns of residents still unanswered
Posted 20 October 2014, 1:59 p.m. Suggest removal
observer2 says...
Hi John
Please see article below on Barbados. They recently implemented VAT and it didn't bring down the debt. The extra money from VAT can go to help the newly created poor.
We have a safety net. We can go to IMF for a loan if our debt gets up to 100% of GDP.
Barbados Seen Needing IMF Help Amid No Growth, High Debt
2014-10-14 14:06:47.684 GMT
By Aleem Khan
Oct. 14 (Bloomberg) -- Barbados business leaders and
economists say the Caribbean island should seek an accord with
the International Monetary Fund as the government struggles to
spur an economy with one of the world’s heaviest debt burdens.
Efforts by the government to trim the public sector by
firing 3,000 workers and reining in spending failed to spark
growth in the first half of the year in a country with a debt
load equal to 96 percent of gross domestic product. That
prompted the Barbados Chamber of Commerce to say the government
should consider talks with the IMF.
On Bran: Corruption costs Bahamians $200m a year
Posted 14 October 2014, 10:35 a.m. Suggest removal
observer2 says...
Excellent points John and well researched. However, the administration can't reduce expenditure as there are so many poor people that need jobs, money, healthcare and education. The administration can't increase transparency (e.g. BEC sale and how they tried to sell BTC during their last administration) for obvious reasons. It can't repay the nation debt because it is too big. It can't stop the waste and leakage for obvious reasons again.
We are still investment grade so we can continue to borrow at good rates.
So the debt must and can keep growing. I think we will be OK through 2020. After that hopefully the oil revenues will kick in and we can pay off the debt altogether.
On Bran: Corruption costs Bahamians $200m a year
Posted 14 October 2014, 10:18 a.m. Suggest removal
observer2 says...
Yes, very bad that foreign yatchs got oil on their hulls.
On Albany clients hit by 'horrific' oil spills
Posted 13 October 2014, 12:40 p.m. Suggest removal
observer2 says...
We need to build proper housing and get the people living in Shanty Towns into them. Also we need to turn on the lights and running water for all Bahamians so we can keep ourselves clean.
On Murderer is found dead in prison cell
Posted 12 October 2014, 10:38 a.m. Suggest removal
observer2 says...
Also we will be drilling for oil which will makes lots of money and diversify the economy. And don't forget stem cell research which will start up a whole new biotechnology industry. Wow...that's 3 new industries if you include numbers.
On Bran: Corruption costs Bahamians $200m a year
Posted 12 October 2014, 10:31 a.m. Suggest removal
observer2 says...
Hopefully the revenue collection from VAT and gaming taxes will reduce the national debt and pay off for some of the administrations project cost overruns.
VAT, in essence, will make 4,500 businesses revenue collection agents for the government. I think all of these companies will be honest and pay over to the government the revenue they collect.
We should expect a big windfall of taxes from the legalization of gaming.
Nothing to worry about, all will be fine. Lets give them more time to sort things out.
On Bran: Corruption costs Bahamians $200m a year
Posted 11 October 2014, 11:17 a.m. Suggest removal
observer2 says...
Keeping the actual level of VAT hidden is consistent with how our government operates.
On 'Headed for chaos' on VAT-inclusive pricing
Posted 2 October 2014, 12:48 p.m. Suggest removal
observer2 says...
With the additional VAT and Numbers taxes government could hire threes young people.
Also with Carnival/Junkanoo it will give the something to do in their spare time.
On PM: We must stop severe craziness of young people
Posted 29 September 2014, 1:22 p.m. Suggest removal