The proposed "white paper" focusing on finding an alternative tax system for The Bahamas has not yet reached Cabinet, Guardian Business can reveal.
"I am settling the basis of the paper to bring to my colleagues in Cabinet. The core of that has been finished, so I am hoping that in the not too distant future, I will be able to present it for consideration to my colleagues," Prime Minister Perry Christie shared with reporters following a Cabinet meeting yesterday.
Christie's comments come after he recently confirmed that he had the "white paper in hand", and was ready to move forward with the recommendations.
Last month, the prime minister spoke on the subject during the 2012/2013 Fiscal Position Symposium held at the Sheraton Nassau Beach Resort and Casino. It was there that he admitted that some areas of revenue generation may have reached their peak.
"The position is that I told the country that The Bahamas is one of the few countries that doesn't have some form of value added tax (VAT), and that when we look at the revenue of our country we realize that we are running out of sources for additional revenue," Christie said. "We are to the maximum now I think from what we can get from the customs duties."
The prime minister said that his current position will enable his government to make progress on taxation, and he wants everybody to be on the same wavelength on the subject.
Christie said the "white paper" has been designed for open public discussion, as it represents a paradigm shift in how the government administers and collects the country's taxes.
"After Cabinet, the 'white paper' will go to the House of Assembly and then the country for discussion. It represents a paradigm shift in how we administer and collect the taxes of our country," he explained.
Financial Services Minister Ryan Pinder also believes there needs to be a fundamental shift and some type of alternative system has to be implemented.
"It has become increasingly apparent over the past few years that government revenues are not keeping pace with expenditures," Pinder said. "I am advised that the introduction of an alternative tax regime with broad coverage could likely compensate for revenue losses stemming from tariff reductions and create necessary government revenues. It would, if properly implemented, also serve to level out some of the 'peaks and valleys' in duties that currently exist and make goods generally more affordable to Bahamian consumers."

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