Family Island administrators have voiced their support of the government's recent value-added tax (VAT) education initiatives, claiming that a recent conference and educational seminar has largely "dispensed of the negativity" surrounding the tax.
During an interview with Guardian Business, Eleuthera Administrator Charles King commended the Ministry of Finance for its recent administrator seminar and stated that, while he had not yet created a specific education program, he remained confident that the island would be prepared for VAT at the start of January with the assistance of Ministry of Finance personnel.
"It was enlightening, really. [Administrators] received a better understanding as to what exactly the VAT is all about...It dispensed of the negativity [surrounding] VAT," said King.
King claimed that he had received numerous inquiries regarding the tax, adding that several local grocery stores, fuel stations and hotels were among the few businesses that met the government's $100,000 VAT registration threshold.
"[People] are very concerned about it. They want to know what's happening. As a result of the inquiries that we've been receiving...we intend to set up a program to educate businesses so that people are prepared... If we all work together, we'll get it done," stated King.
South Eleuthera Administrator Margaret Symonette encouraged all local businesses to become VAT registrants, despite the relatively small number of businesses required to register with the government.
The Ministry of Finance recently released a series of industry-specific VAT guidelines on its VAT website to supplement the general VAT guide. VAT will be implemented at a rate of 7.5 percent effective January 1, 2015.
South Abaco Senior Deputy Administrator Lavon Harris-Smith similarly felt that the presentations successfully broke down the tax's projected impact and benefits to administrators.
"Hopefully [Ministry of Finance officials] will be able to come into the Family Island districts and put on similar presentations," he said.
Harris-Smith admitted that the tax was initially met with resistance from the local community, but felt that it was necessary to Family Island development.
"In the Family Islands, the costs of goods and services are already astoundingly high, so the reaction [to VAT] is not good. With the help of the administrators we'll be able to make the people understand the reasons why this tax had to come about," he said.
"It is something that is necessary. We are badly in need of roads and upgrades in utilities," said Harris-Smith, indicating that more workshops and town meetings between administrators and ministry officials would be scheduled ahead of the tax's implementation to prepare the area's residents.

Click here to read more at The Nassau Guardian