A top chartered accountant is warning the government not to introduce any new forms of taxation, as he estimates nearly 50 percent of the average Bahamian's income is already being taxed. Instead, John Bain, managing partner at UHY Bain & Associates, suggests that the government find new revenue streams because the average Bahamian "cannot take any more". The accountant used next month's referendum, on gambling, as an example of a potentially "great additional revenue stream".
He believes if the government were to find additional sources of revenue, there will be no need to increase taxes, directly or indirectly. He pointed out that the country's marine life, airspace and liquefied natural gas (y) reserves could all be great revenue sources for The Bahamas, all of which the government is not paying enough attention to. "Bahamians are some of the highest taxed people in the world. You don't see direct taxation but you pay taxes every single time you buy a gallon of gasoline or milk.
Because of our regressive type of tax system, the poor bear the burden of the taxation while the wealthy are less affected by it," according to Bain. "I am trying to warn the Bahamian government not to place any more taxes on the Bahamian people. My suggestion to the government is instead of increasing taxes, whether direct or indirect on the Bahamian people, I think that the government should find new revenue streams.
"In my opinion, the biggest thing that we can do is take control of our marine life and manage it the way the Saudi Arabian government manages their oil. We have an unlimited amount of wealth in our waters that we take for granted." Bain estimates that the average income for Bahamians is $21,000 annually and that between direct/indirect taxes, that could add up to 50 percent of one's income. "If you have a household income of less than $50,000, I think you probably pay between 30 to 40 percent in taxes. That's just my opinion.
If you make between $12, 000 and 13,000, like most households in The Bahamas, you could be taxed up to 60 percent and if you are making more than $250,000, you probably between 10 and 20 percent." When the Progressive Liberal Party (PLP) came into office earlier this year, State Minister of Finance Michael Halkitis pledged the government would review the taxation system, calling the present state "unpredictable and volatile." His comments have met little resistance within the party and among the opposition as the country's deficit and national debt reach dangerous levels.
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