Don’t Be ‘Deer In Headlights’ If Vat Not Ready July 1

“We will not cause delay for the sake of delay,” Mr Bowe added.

Mr Comito reiterated that the resort and tourism industry was “strongly opposed” to the July 1 VAT implementation date, as both public and private sectors were “not ready” from any standpoint.

“There are huge costs involved in both the hardware and software systems changes from all sides to comply with the requirements and be ready,” he added.

“We believe additional economic impact analysis is essential if we are to enter this in the most complete way, and if we don’t it could wreck the Government’s revenue projections.

“Thank God the Prime Minister has indicated he is receptive to whatever analysis the private sector brings to the table. We think that’s the most sensible approach the Government could take.”

Mr Comito said the resort and tourism industry had engaged Ernst & Young to assess the likely “net effect” from VAT and other tax/fiscal reforms on the sector’s competitiveness, growth and the broader economy.

Mr Bowe, meanwhile, said the Bahamas had to improve the “dismal” performance of the existing tax system, with both Customs and the real property tax department performing below “50 per cent of revenue potential”.

And, when it came to the Government’s VAT education efforts, he said these had not focused on likely cost of living increases and alternatives. Last February’s ‘White Paper’ had been “very cursory” on the latter and other tax options.

Neil Hartnell
The Tribune
Published March 14, 2014