‘I never saw IMF report’

Former Prime Minister Dr. Hubert Minnis said yesterday that he never saw the International Monetary Fund report that recommended an increase in value-added tax (VAT) to 15 percent and stressed that his government had no plan to increase the tax. 

“In the last budget speech, I had committed to the Bahamian people that the government would pursue further tax reforms,” Minnis said. 

“I committed to this. We would pursue further tax reforms, both to expand our tax base and to ensure that we create a tax system that is fairer and more equitable. The records would reflect that. 

“I also committed to undertaking a tax study and publishing the findings in a white paper for public consultation among key stakeholders and all citizens because the government made a decision on the way forward. 

“These were committed. We subsequently approached the IMF to assist with this tax study. 

“Now, it is my understanding that the IMF produced their preliminary report in early September. I can say that I, nor Cabinet, ever saw this report.

“I never saw this report. Cabinet never saw this report. The report would have come during the time of election and [the Ministry of] Finance had the report. I never, nor Cabinet, saw the report. 

“Therefore, I challenge the government to produce the white paper for consultation and to be honest. Never did we, the FNM agree, or ever had any intentions of increasing any tax on the Bahamian people. 

“So, if the PLP had used their so-called decrease in VAT tax to win election knowing that they had intentions to increase it immediately after, do not put the FNM in it. The FNM will not be a part of that.”

On Monday, Prime Minister Philip Brave Davis said that the IMF recommended to the previous government that if it did not change its VAT structure, the tax would need to be raised to 15 percent.

“Now, I know you all remember that the member for Killarney told the Bahamian people that he went to election eight months early because the country faced headwinds and tough decisions,” Davis said.

“We said at the time that he wanted Bahamians to vote before he raised their taxes, and this major tax increase appears to be what he had in mind. Raising VAT to 15 percent would have turned headwinds into a hurricane.

“Raising VAT to 15 percent wouldn’t have been just a tough decision, it would have been a terrible decision that would have plunged our economy into a downward spiral, past the point of no return.”

Minnis recently said he called an early election because difficult times were ahead for the country and the government needed a new mandate to make some “very, very difficult” decisions.

Asked yesterday what headwinds he was referring to, Minnis said, “I never identified it. I knew that the cost of living and everything was going up, sky-high.

“I only said headwind and this was a not part of it.

“He cannot get into my head to determine what the headwinds are. I never said it. If the prime minister could have gotten in my head to determine what the headwinds are, then the prime minister could have also seen in my head that we had no intentions of increasing any taxes. 

“I’ve never discussed it. The only thing I said is that we needed a new mandate to carry the country forward because we would have to make some decisions that would be beneficial to the country.”

The Guardian reminded Minnis that he said “difficult” decisions would have to be made.

Asked what those decisions could have been, Minnis replied, “I did not define [them] and I will not.

“If the prime minister could get in my head he would see that there was never any intention of increasing taxes. Don’t try to use me and the FNM. 

“I have said repeatedly that I am not an advocate for escalating or increasing taxes. It is my view that the lower taxes are the more people spend, more people are going to get involved in the economy … and your economy grows.”

In 2018, Minnis’ government increased VAT from 7.5 percent to 12 percent. 

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source https://thenassauguardian.com/i-never-saw-imf-report/