Published by Youri Kemp, Nassau Guardian, November 21st, 2024
The Bahamas Chamber of Commerce and Employer’s Confederation (BCCEC) told Guardian Business that it “vehemently opposes” any suggestion by the International Monetary Fund (IMF) that the government should increase taxes.
The BCCEC in a statement, after the IMF in its recent Article IV Consultation report suggested that the government should increase value-added tax (VAT) to cover the revenue shortfall, said: “As the voice of the business community, we take exception with several of the IMF’s suggestions that would adversely impact our members. Additionally, the ambiguity of some of these recommendations leaves room for unsubstantiated speculation and conclusions that may not align with the original intent.
“BCCEC vehemently opposes even the suggestion of increased taxation, especially on the backs of a business community that already must contend with increases in NIB, energy costs, minimum wage, cost of procurement from suppliers, shipping costs and customs duties, among other inherent challenges like theft, wastage and spoilage. Surely, given the expertise within the government’s caucus, they can devise more ingenuity for increased revenue without the encumbrance of increased taxation, especially given revenue projections for 2024/2025 of more than $3 billion, compounding the record revenue with consistent failure to deliver basic services.”
Further questioning the IMF’s rationale for increasing taxes, the BCCEC also said: “The report suggested recommendations to increase VAT and water costs. Increase to what percentage? What is the rationale? What feasibility study was conducted to determine that this was the best course of action? When is this proposed increase intended to be introduced, and is the recommendation for a phased approach or immediate implementation?
“We already have the challenge of water quality, pressure and consistent supply, especially in neighboring islands, so we question the audacity of the suggestion to increase cost with no mention of increasing the consistency of supply and service received.
“Instead, we recommend streamlining government spending to control expenses, which would have the same or better effect on revenue as the proposed increase in taxation, without an added burden to taxpayers and businesses.”
The BCCEC continued: “Finally, the report suggested eliminating the business license fees with a 15 percent profits tax on large domestic firms, we question the rationale for this recommendation, as many businesses operating in The Bahamas are exempted from a fee for the issuance and/or renewal of their business license, and those that pay a fee are already subjected to the added cost of audited financials, coupled with the inconvenience of the VAT offsetting practice being discontinued without prior consultation and impact assessment – a decision the BCCEC strongly opposed.
“Instead, we recommend continued enforcement for delinquent real property tax, as hundreds of thousands in collectable revenue is missed given our inefficiency of current tax measures, making it inadvisable to enact new ones.”
The BCCEC did acknowledge and support the imposition of the domestic minimum top-up tax of 15 percent, which it said is a “measure of fiscal equitability”.
“Moreover, the publishing of beneficial ownership information of public contract awardees and audited financials for public corporations would increase fiscal transparency, so we also support this recommendation,” said the BCCEC.
“Further, the incentivization of private sector investments, particularly outside of New Providence, would indeed expand MSME growth, arrest family island brain drains, and improve crime mitigation factors, which the BCCEC has continually lobbied for over the years.
Finally, the report highlighted the ease and cost of doing business. Specific reference is made to ‘expensive electricity, a shortage of skilled labor, and obstacles to business formation and expansion [weighing] on growth’. We wholeheartedly agree and call on the government to curate an environment conducive for the business community to first survive and then thrive with fiscal measures, policies and concessions designed to bolster longevity. We also call on the business community to take initiative and foster a culture of resilient ingenuity in the face of adversity, despite the regulatory challenges imposed by regulators.”
Read the entire article >>> https://www.thenassauguardian.com/business/chamber-opposes-imfs-suggestion-to-increase-vat/article_f2bd4042-a77f-11ef-b918-8b1740f647eb.html
Коментарі