Marco City MP Greg Moss said the harm value-added tax (VAT) has caused since its implementation on January 1 is indefensible. Moss, a lawyer and former chairman of the National Insurance Board, has been the most vocal government MP against VAT’s implementation. “I continue with my view that VAT only makes sense in an environment where one wants to protect the rich and where one wants to avoid scrutiny of the elitist and politicians in our country through a proper imposition of income tax,” he said in an interview. “The harm that it is already imposing is indefensible.” Moss said in Freeport, Grand Bahama, he has seen a decline in consumers buying non-essential products and services, such as shopping at fast food restaurants. He said even his 11-year-old son has decided to save his lunch money instead of buying excess items for lunch. “The ripple effect of VAT, the imposition of VAT, is now being felt from the school children, who have commented to me on the increase of VAT affecting the amount of money that they have to spend because VAT is on the various supplies that they purchase for lunch,” he said. “Some people have only now come to the realization that VAT will affect everyday essentials like gasoline and electricity.” Some Bahamians have expressed concern over the new tax and the alleged price gouging some businesses are engaged in. The Ministry of Finance has warned consumers to be vigilant and report any abuses. Moss pointed out that even the banks are issuing notices that VAT will be imposed on bank transactions. “There is somewhat of an alarm as to where that ripple effect will end,” he said. VAT was implemented at a rate of 7.5 percent. Electricity bills, other utilities, food and private healthcare are among the items that are ‘VAT-able’. According to the VAT Act, no goods are exempted and the list of exempted services was shorted to 14 items. Most financial services, the sale or rental of a dwelling, the transfer of vacant land, the lease of land and any service by a government entity in connection with a taxable activity are exempt. Education services, specifically tuition funded courses, services rendered by a day care business, public heath care services, religious services by an institution of religious worship and services by a recognized charity relating to charity functions are also exempt.
Posted on: Sat, 10 Jan 2015 16:37:37 +0000
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