Well, well, the long awaited "White Paper" on the implementation of VAT so the Government can increase its revenue was presented to Parliament on Wednesday.
Download the tax paper here… In other words our cost of living is about to increase at an even faster rate.
First of all Bahamians need to rethink the idea that Governments should be allowed to borrow and spend with impunity and then decide they just need to take more money from taxpayers! They pass laws to make the private sector and individuals accountable yet they give themselves a pass on their own culpability.
Want to bet dollars to donuts that within five years Bahamians will be taxed at rates equal to or above those in Barbados if more serious spending reforms are not instituted? For the record, in 2011 Barbados taxpayers paid a VAT (17.5%), Personal (33% Avg) and Business/Corporate (25%) Income Tax and Import Taxes from 40% to 150% or higher. Read more here… and here (PDF)…
These new laws should come with a warning label: Savers and taxpayers beware!
And don't forget those that they have to exempt proving how the policy is inadequate from the get go. If it's fair, why are some people/companies given a pass?
Of course, those that govern will somehow convince most Bahamians that the increased taxes will be for our own good or the rich just need to pay more.
My stomach is turning already and as history proves, the devil is in the details of legislation, not the language used in an attempt to make it palatable.
Rick
The Christie administration is like a dog surrounded by 4 trees, the dog hasn
t got a leg to stand on, Christie is playing a game with consequences so dire it will destroy the business community, someone has to make it clear to Christie his spending addiction needs to be cured, you just cant borrow and borrow hoping new taxes will be sufficient to repay these loans, they wont, one problem Christie has and so did his predecessor, is collecting taxes, we all know there is a segment of Bahamian society that never pays their fair share of taxes, collect all of the taxes due and that's a start to getting the Bahamas back to a reasonable financial climate. Rick remember Christie is quickly becoming a master of political drama, it make great press, but lacks vision. As I sit afar Rick I just dont see any prospect for change until new blood takes over government, the players so far from both parties are yesterdays men with yesterdays ideas.This is absurd.The VAT has helped destroy Europe’s economy,put a whammy on England’s & now Christie wants to do it to ours.The people that deal in cash will never declare half of it which will only make it worse.When will these numskulls realize they have to stop spending & stop taxing so much.They don’t have any financial woes because there setting themselves up pretty sweet.I am so sick & tired of these dead old politicians who just continue on with the same old bunch of nonsense.For heavens sake,do they not see that whatever they are doing is NOT working ? Are they sleep or are they dead ? Who in Gods name are Mr.Christies financial advisers & what planet are they living on ? If business is to survive in this economy & in this country,the tax increases have got to stop.
I really wonder how much pressure is being placed by the IMF as a result of our borrowing, debt and continuing deficits as well as the international agreements we have signed on to without due consideration?
Probably a whole lot but surely common sense needs to kick in & the spending must stop.The IMF also knows full well that more taxes will hurt our ability to pay the $ back even more ?
Hi Rick,
Me thinks it’s the IADB, not the IMF, but what is amazing is the selective choice of the Government, which agrees with some suggestions:
http://www.bahamaslocal.com/newsitem/37757/IDB_urges_tax_reform_and_debt_management.html
…. BUT not the main suggestion:
http://www.iadb.org/en/news/announcements/2011-12-06/bahamas-discuss-debt-and-fiscal-sustainability,9747.html