The president of the Bahamas Humane Society (BHS) has claimed that the charitable organization will "suffer tremendously" under the government's proposed value-added tax (VAT) plan, and the implementation of the tax would be a "disaster" for the country on the whole. Speaking with Guardian Business, BHS President Kim Aranha argued that VAT would severely harm the organization due to a lack of government support and difficulties raising donations following the tax's implementation."The Humane Society will suffer tremendously... We do nothing but serve the country, despite the paltry $15,000 we receive from the government," said Aranha. "Everything's going to be more expensive," she stated, adding that she would prefer that all charitable organizations be "zero-rated" rather than VAT-exempt."We will not pay VAT on dog food and other things that we ship in, but we will pay for all the services we receive. We're not going to be raising an additional 7.5 percent in donations," noted Aranha. However, she applauded the government for providing $20,000 for distemper vaccines in response to a recent outbreak. Aranha noted that the BHS houses roughly 300 animals at any given time and this already costs nearly $1.5 million annually.In addition to the potentially damaging effects on the BHS, Aranha's fears extend to the whole country. She called into question the government's ability to properly enforce VAT collections, given its ongoing struggles with collecting outstanding real property taxes. "It's going to be a disaster for The Bahamas. I don't think we have the bookkeeping or the accounting expertise. We're just putting in another layer that will be abused, that people will find a way around. The few honest people will pay, and tons of other people will ignore it,""The only 'people' who are going to suffer at the end of the day are the animals," stated Aranha. "I'm very disappointed with this whole route, I don't think it's the answer for The Bahamas. Under last month's tabled VAT legislation regulations, charitable organizations, including the BHS, will be able to apply for a refund for any "VAT paid on the acquisition of qualifying goods or services". Despite this, other entities have already raised serious concerns over the speed with which businesses and organizations will be able to receive their refunds from the government. In announcing the new legislation, the government specifically stated that it would try to streamline the VAT refund process.The government plans to implement VAT at a rate of 7.5 percent, effective January 1, 2015.

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