The Nassau Guardian
VAT Bill expected by month’s end
The government will table the value-added tax (VAT) bill before the end of the month, Minister of State for Finance Michael Halkitis said.
“When we do that the public education will expand,” Halkitis said.
But Shadow Minister for Finance Peter Turnquest said the government is dragging its feet and ought to give the bill priority.
“After months of discussion, several sets of independent consultants, as well as the government’s own hired consultants, we seem to be no further along with the VAT implementation schedule than we were last year this time,” Turnquest said.
“Nothing has changed.”
VAT, which was initially expected to be implemented on July 1, 2014 at a rate of 15 percent, is now expected to be implemented on January 1, 2015 at a rate of 7.5 percent.
Turnquest said even with the delay Bahamians are no closer to understanding how the tax will be implemented.
“It must be unacceptable that Bahamians and business entities are no more informed today than they were a year ago, with the clock continuing to count down to the January 1, 2015 implementation date,” he said. “This is almost negligent on the part of the government and is certainly inconsiderate.”
Turnquest said it must also be considered unacceptable that web shop gaming, which he described as a “voluntary tax on the poor”, is being given priority over the necessary reform, the establishment of the Central Revenue Agency and the collection of existing taxes.
“Looking at it, the tax reform package is going to have a significant impact in the way that business and consumers operate, not to mention the effect that it will have on our pockets,” Turnquest said.
“In addition to that, when you reference WTO it’s going to have a significant effect on long-term revenue. When you do proposals and look at what is going to have the most significant effect, to me, tax reform is way ahead of any web shop issue.
“And so yes, it is in my opinion a no-brainer that the VAT legislation and regulations ought to be brought prior to messing around with web shops.”
The Gaming Bill and accompanying web shop regulations were expected to be tabled earlier this month. However, Minister of Tourism Obie Wilchcombe said the legislation will now be tabled before the end of the month.
As it relates to VAT, the government has yet to reveal the list of exemptions.
Last month, Prime Minister Christie said in the House of Assembly that the list was still being considered.
However, he added, “I expect to announce some selective reductions in customs duties to coincide with VAT introduction.
“The finalization of our WTO accession negotiations will also require some more generalized reductions when those negotiations conclude.”
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