APRIL 12TH - APRIL 19TH, 2014
VOLUME 10 - No. 12
$1.00
VAT BETTER THAN THE PAYROLL TAX
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Bahamian PM tells TCI the best advice he received from experts is to introduce VAT BY VIVIAN TYSON
P
rime Minister of The Bahamas Perry Christie has told Premier of the Turks and Caicos Islands that although some persons in that neighbouring country wanted his government to introduce a payroll tax, the best advice The Bahamas government received, and is following, is to implement a Value Added Tax (VAT) Christie, who was in the Turks and Caicos Islands for a few days to attend the official opening of a Bahamas-affiliated lawfirm, made the statement at a media briefing in the Premier’s Office on Wednesday. The Hon. Dr. Rufus Ewing Administration is currently facing heavy backlash from sections of the society on its intention to implement payroll tax, while the Rt. Hon. Perry Christie government in The Bahamas is facing similar pushback, especially from the business community on its intent to pursue Value Added Tax (VAT). The counter attack the Christie government’s VAT push, he said, is being waged mainly by the business community, which believes payroll tax is the way to go. Christie told journalist at the Premier’s Office located at the Hilly Ewing Building on Providenciales that his administration has given the private sector the opportunity to conduct their own investigations to the alternative and report their findings in time so that he would be able to make a decision as to which of the taxes is more suitable for the people of the Bahamas. “What I have done is, I have indicated to the Minister of Finance – I am the minister of finance – that
let us give the private sector an opportunity to hire consultants, which they have; give them a reasonable period of time to report, and I have given them a good faith assurance that we will review their report to see whether their report will convince us that the payroll tax is the way to go. “That process is now very near completion, and so, it is for us to carry out my expressions of good faith
to seriously look at their report. We have reports from the crown agents, we have reports from the Inter-American Development Bank (IDB), and we have reports from the International Monetary Fund (IMF), all of who are in favour of Value Added Tax. “And so, the position is, the best advice that I have gotten to date is that we introduce the Value Added Tax. The ministry of Finance has indicated that it was going to be at 15
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Premier Hon. Dr. Rufus Ewing (centre) and Prime Minister for the Bahamas Rt. Hon. Perry Christie seized a photo op with (from left) Hon. Michael Halkitis, Bahamas Minister of State for Finance; Hon. Porsha Stubbs-Smith, TCI Minister for Finance and Hon. Shane Gibson, the Bahamas Minister for Labour and National Insurance percent; I have indicated that I would not put 15 percent,” Christie said. Interestingly, the Turks and Caicos Islands, up to a little under two years ago, during the Interim Administration, had pursued Value Added Tax, but that was put on hold following strong objections from the business community and the current administration with assistance from the opposition. CONTINUED ON PAGE 6
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