The Nassau Guardian
Priest urges gov’t to tax web shops
Anglican priest Father Sebastian Campbell yesterday urged the Christie administration to make the “unpopular” choice to tax web shops in order to take advantage of the “wealth sitting in our midst”.
Campbell also encouraged religious leaders to help educate the public on the government’s plans for tax reform.
Gaming Board Chairman and Fort Charlotte MP Dr. Andre Rollins on Sunday also urged the government to tax web shops.
In a departure from the stance taken by the Bahamas Christian Council on the issue, Campbell said it is time to be frank because the “numbers” business is here to stay.
He said the government must take the lead and tax the industry in order to inject revenue into the public coffers.
“Effectively tax the number houses,” he said. “Research has already shown that this is an oasis of wealth sitting in our midst. Governments sometimes must make hard and unpopular decisions for the good of the country; go for it.”
On January 28, the government held a referendum that asked voters if they supported the regulation and taxation of web shops and the creation of a national lottery. Most of those who voted said no to both questions.
While the Christian Council urged people to vote no for moral reasons, Campbell said those involved in the web shop industry likely voted no in order to guarantee greater gains for themselves and avoid taxation.
“The resource is here; let’s tax it for the common good,” Campbell added. “As Parliament goes into the debate of gaming, now is the time to level the playing field. Do not give away rights to foreigners that Bahamians don’t have in their own country.”
Campbell was referring to the impending House of Assembly debate on the Gaming Bill. The bill would allow casinos to offer mobile and Internet gaming while preventing web shops from legally doing so, and maintains the status quo on who is prohibited from gambling.
People ordinarily resident in The Bahamas cannot gamble legally in casinos.
Campbell also stressed that the government’s plans to institute a 15 percent value added tax (VAT) on July 1, 2014 is a “bullet we will have to bite”.
The proposed tax has elicited an outcry from the business community and the Free National Movement, which has called on the government to delay the implementation date and educate the public on the tax.
Officials have said the new tax will help reduce the gap between revenue and expenditure.
Campbell said the church needs to step forward and help the government with its public education process for VAT.
“I call [on my] colleagues within the church to step forward,” said Campbell, rector of St. Gregory’s Anglican Church. “It is our duty to prepare our congregations and the nation as a whole for this reality.
“This is where leadership is warranted now in our development. The church must assist in leading the way and not get in the way of this necessary, progressive, albeit radical move.”
Campbell said the government should not delay tax reform or implement it too close to the next election.
“We have no luxury in waiting for this one,” he added. “By 2017 Bahamians would have experienced the results and government would have had time to tweak and show the public the benefit of the new regime. The lowering of custom duties on some items will make the whole thing more palatable.”
Campbell added that along with VAT, the government must also aggressively collect outstanding taxes.
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