Dear Editor,

Here is my response to an opinion piece by Philip C. Galanis published in The Nassau Guardian on Apr 3, 2017 titled "Where did the VAT money go?"
Mr. Galanis indicated in his writing that he sought to answer three questions: "Why was value-added tax (VAT) introduced, where did the VAT money go and what effect has it had on public finances?" I would challenge him to impart upon a second series to this article and ask: "What effect has VAT had on private finances, i.e. that of households across the country?" or perhaps that one is too obvious...
VAT was implemented two years ago, and as an offset or to dampen the impact of VAT, some other taxes and duties were reduced. Nevertheless, all things considered, overall government revenue has increased. With the government bringing in more revenue and at our expense no less, it then stands to reason that there must be something to show for it.
Mr. Galanis rightly points out that we, as Bahamians, have not been asking where the other forms of government taxes have been spent. I would say that we have always wondered where government has been spending our money. The difference now is that we are reminded of VAT at the time of every purchase, and by extension we are reminded that the government is taking money out of our pockets, and so we want to know where that money is going - and not literally, because we have established that all revenue collected by the government goes into the consolidated fund - but practically, what is this money being spent on?
Mr. Galanis berates current members of Parliament for posing this question. I recall Minister of State for Finance Michael Halkitis giving some dubious explanations as to "where the VAT money gone" on the campaign trail. Was he doing so "out of disingenuousness, mischief or ignorance of public finances"?
I will say that Mr. Galanis too is being disingenuous as he perpetuates this ruse and not drawing attention to that which is obviously the source of ire for Bahamians far and wide. Recall the quote you used in your piece Mr. Galanis, that of Jesse Ventura: "I have every right to know how my taxes are spent, how every single penny of it is spent." Where we could have benefited, Mr. Galanis, is if you were to fill in this gap and communicate to us an analysis of government's expenditure and list for us those tangible items that we can point to as that which we have gained from this increased taxation. If you point to increased government salaries, then we remain dissatisfied as service levels remain low. If you point to increased spending in the armed forces, then we remain dissatisfied as we feel no safer in our homes. If you point to increased spending in our schools, then we remain dissatisfied as our children seem to leave high school no better educated and no better prepared to enter the real world. If you point to better healthcare at government facilities, then we remain dissatisfied as we see the long lines at Princess Margaret Hospital and the poorly equipped clinics. You could not possibly point to paying down the debt, as we remain dissatisfied as international rating agency Standard & Poor's downgraded The Bahamas' credit rating to "junk status", which marks the first time that we have ever held such a low rating.
Mr. Galanis purports that "VAT has already contributed to some instances of tax relief and reduction of costs to our citizens." I challenge him to find men on the street who would support this view.
One point we can agree on, however, is that if we are able to see the positive effects all around us in a more prosperous and stable Bahamas, we most certainly will no longer feel the need to ask "Where did the VAT money go?" But until such time, we need not have Mr. Galanis join the chorus of the evasive lecturing about the consolidated fund. Do, sir, offer something more in the future.

- Hailing the high horse

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