I'm not sure why so many government officials seem short of patience about the recent independent research released by the Nassau Institute on the potential impact of VAT for The Bahamas.
According to press reports (Tribune Business) and information received from accountants at the recent Bahamas Institute of Chartered Accountants (BICA) seminar, the latest person to lose his composure is Mr. Ishmael Lightbourne former partner with Pricewaterhouse Coopers (PwC).
While it's not the intention of the report to annoy people, in a mature democracy such as ours, one would expect people in Mr. Lightbourne's position to offer reasoned rebuttal with facts not rhetoric.
Mr. David Godsell has produced a report based on information from the around the world and the region and if we are to anticipate different results here, the government and it's agents like Mr. Lightbourne, have the awesome responsibility of proving how The Bahamas experience will be different. And that takes a little more effort than verbal attacks.
One way to begin to reduce the government deficits and debt is to reign expenditures in. Of course he only sees downsizing the government, i.e. lay offs of civil servants as a way to reduce spending.
But they can hold the line on spending for three to five years and implement pro growth policies so the private sector begins to invest again as an interim measure to see what that achieves and then take further and more drastic action if necessary.
Canada has done this. Why can't we?
Of course that might mean Mr. Lightbourne and his other consultants might lose some perks, but many of us have had to bear that burden over the last few years. What makes our "public servants" any different that they should be immune to the pain?
While any reasonable person understands the need for the government to get its fiscal house in order, the taxpayer did not get the country into this difficult position and it behooves the government and people like Mr. Lightbourne to substantiate their claims with more than incendiary comments.
Maybe if they would concentrate on providing information on where we can find the value in all this, rather than being so defensive, the public might feel more at ease?
It is the spending that’s killing us and that has to stop. Apart from that, what in hell are they getting perks for anyway,destroying the country! They don’t need perks especially when we are paying for them. If they really wanted to get our deficit down they would give up the perks and stop spending immediately and I doubt you will see that. They need to take this VAT and stick it where it will be never seen again.
Our Government administrations, in the name of the Bahamian people, have spent us into insolvency, over the last 4 decades.
“self determination”, “majority rule”, “independence”, have coerced the majority of us to Go with the flow.
The one new criteria introduced though, is the pressure on the body politic and Civil services from the external Lenders, bureaucracies and Trade delegations to “correct the fiscal imbalances which have only gotten worse.
Remember the PVC Pipe Scandal?
The pressure that the majority of the public should have been putting on the elected, has yet to materialize, although it sparks from time to time in response to some slight to special interests. (Unions, Boat operators, straw vendors, hotel operators, industry operators, etc etc.
Taxes have to increase to cover foreign debt and recurrent debt, full stop.
Spending should be curtailed, but the politicos have an ally in the Civil service, both want to preserve their status quo, pensions, perks.
This road is well traveled by other countries, and leads to places of hardship, and for the private sector and unconnected citizens first.
Just another example of the Bahamian cart coming before the horse.. Once VAT is published, then and only then, should it be open to debate and discussion.. As for now we are only speculating as to what will be factual.. What if type questions have no answers as there is no basis in fact..
Let us not forget that Ismael Lightbourn is a qualified accountant and has no formal training as an economist.. In playing the role of economic spokesman for the complex economic issues of VAT, he may be beyond his depth.. His presentation are not meant to be objective and rightly so as he is representing the proposed policy of government as set forth by the new “Washington consensus”.. Perhaps his criticism and anger only is a reflection of his limited knowledge of macro-economics which at times must be somewhat overbearing and frustrating..
Public discourse must be encouraged, but without organization and focus it will be mostly meaningless.. In our neighbors to the South, the Turks and Caicos Islands, the government of the day tried to introduce a VAT.. Public outcry and protests were well organized and eventually caused government to withdraw its unpopular proposal.. If the Turks and Caicos islanders can do it, why can’t the people of the Bahamas?? Do they have backbone and are we spineless, only time will tell.. Proper organization and deliberate focus must be forth coming to unite and stop VAT in its very tracks.. Disorganized complaining and rude behavior with no real understanding only reinforces the position of VAT supporters.. Question with knowledge and cutout the individual foolishness.. Respect the VAT spokespersons, by dealing only in basic and truthful facts about the world-wide failures of this highly regressive and poverty creating policy.. Ask why will it work here in the Bahamas when it has never met its preconceived financial objectives anywhere else.. This crucial question must be fully answered.. VAT leads only to higher consumer prices and ongoing stagflation.. Again, government must answer how they will address these economic issues when the rest of the world has failed.. Time for Bahamians to unite and come together to defeat this cruel and harmful tax.. If they can do it in the Turks and Caicos, so can we Bahamians..
Difference in the T&C is they still have Great Britain….
Who most recently intervened……
The economy will be hit, the only question is how hard,
and will it cause our Government to institute phase two,
being income tax.
I firmly believe this is also inevitable but
time will tell.
it seems to me that the MOF should concentrate on collecting the current taxes that are owed to the government, ie, real property tax, national insurance, business license fees, clean up the corruption in Bahamas customs and collect the proper duties, etc.
Instead, we freely extend moratoriums to non payers!
Who will receive a moratorium on VAT when the time comes?
Of course we must be mindful that governments/politicians don’t operate/think like the private sector, so there can be no correlation between sound business practice and fiscal prudence in their vernacular.
As Tradewinds has clearly stated there needs to be a properly organized and focused revolution to convince the government that VAT is not the answer.
Thanks TOTO.. But please be careful with your words.. I never meant or cited the word “revolution” when referring to the protest against VAT.. This was your words and not mine..
My reference was only about the need for organization and carefully focused opposition To VAT.. Such opposition must be demonstrated in a mature and intelligent manner similar to what took place in the Turks and Caicos Islands.. To use the word revolution is out of order as VAT is going to be a hotly contested issue and cooler heads must prevail if VAT is going to be postponed or hopefully rejected by government once and for all..
Tradewinds,
Agreed, “revolution” in its literal sense maybe too strong of a word in this context…but the point i think we both are trying to emphasis is that ALL of the Bahamian people are going to have to stand up to be heard, in a united, organized and focus way, not something we are very good at.
No intention was meant to incite conflict or offend any person, just to bring home how serious this matter is.
Right on TOTO and welcome to the new meaning of, “we shall over come”.. For the sake of our Bahamas, which is loved by friend and foe, we must champion the cause of economic righteousness, guide by the doctrine of truth and fairness for all.. No government shall tell us what to do as we are free men and woman who reject economic subjugation.. It is our government and there will do what the people tell them what to do.. Every Bahamian must be the master of their own economic destiny.. Both winning and failing are our right as no master will force our destiny.. Liberty, Freedom and Individuality are our unalienable rights as freedom loving citizens of our Bahamas..
They can’t collect the current taxes because they would have to collect from themselves and their cronies and God knows they will never do that.
Ignorance and the lack of specific knowledge is always the cause for outbursts of anger and even self-resentment.. We witness this silly and uncalled for behavior at all levels of government.. What these so-called experts don’t seem to realize is that more knowledgeable and well informed citizens have similar antagonistic reactions and feelings about these low information political antagonists.. Rightly so for they have the intellectual reasoning to know which side is correct and tempers flare as ignorance seems to prevail..
Perhaps it is time to ask ourselves why does government always seem to use these old political castoffs for appointments to important positions and office?? Political payoffs aside, we seem to appoint some of the least qualified people to positions that should be of highest important.. These appointments are in a sense a kind of national disrespect for the positions which our government assigns appointment.. At once our Ambassador to the United States comes to mind who often falls asleep in the middle of a meetings and can’t stay awake even during personal conversations.. This is most embarrassing for a nation that is seeking both support and influence.. Certainly we could come up with a more intelligent approach in filling such important appointments and positions..
This raises the important question, again political influences aside, as to why we have an accountant that knows very little about macro-economics to act in the capacity of financial consultant for VAT and its principle spokesmen.. Certainly government could have found someone more qualified and trained in economics to speak knowledgeably on VAT and related economic issues.. At least they would not appear to be uninformed and even foolish.. Lots of unanswered questions concerning VAT, with little to no meaning answers forth coming, only silence.. The public is being left up in the air, but that’s nothing new..