While commenting specifically on the tourism sector, our visitors implied we should be happy to charge our tourists part of our tax burden… Of course this is said without intimate knowledge of our market and how stop over vistors are getting harder to come by.
They also indicated New Zealand's tourism industry was unaffected by the introduction of VAT, so we should not be concerned.
Meanwhile, New Zealnd's cost of living is estimated as up to 36.8% higher than the US, depending on which indices one uses. More details? Click on the image above or here…
One gets the sense that these comments are made to assist The Bahamas government in getting people to accept the burden of VAT more quietly.
According to Mr. Halkitis, Minister of State for Finance… "They (the New Zealnd visitors) suggest we come in at a lower rate with no exemptions and just find another mechanism to help those low-income earners affected, perhaps [with] enhanced social assistance."
After all of this they told us "New Zealand has proven VAT to be a "simple and efficient" form of taxation."
At the risk of repeating myself, here's the rub, or should I say the problems.
- VAT might be "efficient' for governments as they are turingin their repsonsibility for taxation over to the private sector.
- VAT means a lot more regualtion that business people will have to concern themselves with rather than with trying to earn a living.
- If VAT is so simple, why does government have to hire a hoard of accountants to enforce it?
- If VAT is so simple and efficient why are they proposing such stringent penalties for non-compliance?
- Why is there so much fraud relating to VAT aropund the world?
- If VAT is so simple and efficient why do we need an enhanced safety net for the poor?
- Having to provide special assistance in the form of social security or th elike speaks volumes about how destructive VAT is.
The more I read from the New Zealnd VAT Specialists, the more it seems they were here on a mission to placate Bahamians and sell the governments idea that it's better for them to raise taxes rather than concern themselves with serious fiscal reform and collecting existing taxes authorised by law.
So let's all sing together now: Don't worry, be happy, and just pay up!
