The hotel sector is awaiting government "clarity" with respect to a laundry list of concerns over value-added tax (VAT), with a leading stakeholder arguing that it is urgent that these matters are addressed and legislation released.
Commenting on the sector's perspective on the status of the government's VAT implementation plans, Robert Sands, president of the Bahamas Hotel and Restaurant Employers' Association (BHREA), said the industry will not be in a position to comment in an informed way on "how satisfied we are" until the government deals with "nine or ten" points.
"I think the fact of the matter is that there are still some details the hotel industry has provided to the Ministry of Finance requesting their review. There are still a number of outstanding issues that we've put in writing to the Ministry of Finance. We are engaged in dialogue on those matters."
The government announced plans to implement VAT at
7.5 percent in late May.
However, it has yet to
table legislation and regulations outlining the details of the tax.
Sands, who is also the senior vice-president of administration and external affairs at Baha Mar, said: "The success of VAT will be in the details and we have articulated about nine or ten points that require clarity. As soon as we get a clearer position we'll be in a position to give more details."
Asked by what time the industry would need to see the updated VAT legislation and regulations in order to successfully implement it, he said: "That point is now. That's why there's a sense of urgency for these matters to be addressed."
The Bahamas Institute of Chartered Accountants (BICA), which was previously identified as one of the entities that would lead the charge on the education of businesses in preparation for VAT, has stated that no education can take place prior to the publication of these documents.
Speaking with Guardian Business earlier this week, Bahamas Chamber of Commerce and Employers Confederation Chairman Robert Myers said this week was the first time since the budget that the chamber and the government have been in communication about meeting again in regards to VAT and fiscal reform.
He had earlier indicated that there had been a lack of dialogue between the two sides since the announcement of the updated VAT plan.
"We wrote a couple of strong letters saying 'what's going on?' Hopefully this week we'll have that meeting and try to figure out the way forward with regards to the steering committee and the implementation committee that will help in the implementation of VAT," said Myers.
Meanwhile, as further signs emerged this week in the form of a meeting with private sector stakeholders on Monday, and a consultation held in conjunction with the Pan American Health Organization (PAHO) on Tuesday, that the government is gaining momentum in its efforts to bring into force National Health Insurance by 2016, Sands said it is too early to comment on BHREA's views on the proposed initiative as much remains to be clarified.
In a statement issued yesterday, Stuart Bowe, president of the Bahamas Hotel and Tourism Association (BHTA), said the association is actively engaged in the consultative process on NHI, working with various agencies including the Ministry of Health, the Pan American Health Organization, the World Health Organization, representatives from civil society, the National Insurance Board, social health organizations and the Bahamas Chamber of Commerce and Employers Confederation.
"The government of The Bahamas is procuring a strategy for universal health coverage for The Bahamas. The BHTA is sensitive to the implications of universal health coverage and will stay close to this important process in the coming months," Bowe said.
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