The Nassau Guardian
FNM MPs urge clarity on VAT issue
Two Free National Movement (FNM) MPs lashed out yesterday at the government for ambiguity over value-added tax (VAT) with just three months before the proposed July 1 implementation date.
FNM Deputy Leader Loretta Butler-Turner told The Nassau Guardian the government would put the economy “in a tailspin” if it forges ahead with the July 1 date.
She anticipated that the government would make a definitive statement on the issue at the end of May, when the new budget is presented to Parliament, but she said this is too little time for the business community to prepare for the new tax.
“Businesses would need more than a month to prepare to do the double accounting system,” she said. “It’s not just a matter of lowering the rate.
“We still don’t know where we’re going, [and] we’re still just walking in the dark.
“It’s indicative of this government as far as I can see in terms of lack of organization, lack of process, very little focus and they create nothing but chaos and confusion.
“I couldn’t see them bringing this into force on July 1. And now that we are at this stage, seven weeks out, it’s worse. I don’t know what they are going to do. I’ve never seen a government so incompetent in my life.”
She also criticized the government for not yet finalizing the revised tariff schedule that will accompany VAT or releasing the supporting regulations.
East Grand Bahama MP and Shadow Minister of Finance Peter Turnquest said a forced implementation at this stage would be “disastrous”.
“The date is drawing near and one would have thought that all of the final details would have been released by now and the educational campaign would have been in high gear,” Turnquest said.
“The prime minister has foreshadowed some delay and we certainly would encourage him to stick to that position and to ensure that if we are going to go forward that there is a well thought out and coordinated plan for implementation.”
The FNM has repeatedly criticized the Christie administration for its plan to administer VAT and its handling of the process, however the opposition has also come under fire for not providing an alternative tax model.
Prime Minister Perry Christie said recently the government will introduce VAT at a rate lower than the 15 percent previously announced.
The prime minister has also hinted there might be a delay.
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