Cash lashes FNM over VAT issue

The Nassau Guardian

Cash lashes FNM over VAT issue

The Free National Movement (FNM) has failed to present specific alternatives to the government’s proposed value-added tax (VAT), FNM Chairman Darron Cash wrote in an internal memo that suggested his party move away from “castigating” the Christie administration on the issue and provide specific policy suggestions.

Cash’s memo was sent to members of the FNM’s executive committee on Monday.

The Nassau Guardian has obtained a copy of that memo.

Cash wrote that while the government has “been paralyzed” on the issue of tax reform, the opposition has not taken a clear stance.

“It seems unreasonable that the Official Opposition would say no to what some of our colleagues have described as the regressive, poor man hurting VAT, while acknowledging that something needs to be done and then conveniently refusing to offer a specific alternative or stimulate the debate about meaningful, credible alternatives to a VAT disaster on July 1.”

The memo also said: “We have been vocal and voluble, but we have not distinguished ourselves, at least not yet.

“Specifically to govern is to choose and the FNM to date has in fact offered no specific alternatives to VAT.”

Cash said that since November 2013, many people have asked him for the FNM’s position on VAT.

“They have asked this in part because the November statement on VAT by the leader [Dr. Hubert Minnis] was regarded less as a statement of alternative tax policy and more as an attack on the government for offering a tax option that Bahamians would later learn the FNM’s own minister of state for finance [Zhivargo Laing] had stated publicly the FNM would have considered,” Cash wrote.

“To reiterate the point, we have to date offered no specific alternatives to VAT.”

Cash was referring to a statement Minnis made that slammed the government over its plan to introduce the “regressive” tax.

Minnis’ critique of the tax came even though the Ingraham administration planned to give VAT early consideration if reelected.

Cash said the FNM can no longer delay releasing an official alternative tax plan.

“The ‘delay and explore only’ option was viable as a posture for the alternative government (the opposition) for only a limited time,” he said.

“It is the position we maintained for about six months. Now that time has essentially run out — in no small measure because of the prime minister’s failure to make a decision — the country needs another option from the Official Opposition.

“We must now offer a meaningful alternative. It is time to pull the trigger.”

Cash wrote that while it is still a valid argument for the government to delay VAT, as of July 1 the government must make a decision to help the country’s fiscal condition.

“The FNM must now move from simple castigation in favor of proposing specific public policy,” he said.

“There are no easy options. There are only tough choices.”

The memo added: “Each day Bahamians watch the runaway VAT train with great expectations and fears as to what happens next.

“By most objective measures the overwhelming majority of people in the business and civic communities sense that this is the wrong tax at the wrong time. People want analysis and information.

“Those observers can plainly see that the Christie government is simply not ready to implement VAT on July 1.”

Cash repeatedly stressed that the government needs to delay VAT, but it needs an alternative plan to generate revenue.

Cash said the consequences of a national financial failure would be more harmful than the current crime problem.

“In fact, financial collapse would make our crime problems far worse,” he wrote.

The government has said it plans to introduce VAT at a rate of 15 percent in most cases on July 1.

The plan has been met with resistance from many in the private sector who have called for VAT to be delayed or abandoned in favor of an alternative tax.

 

 

 

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