A meeting hosted by the Coalition for Responsible Taxation on value-added tax (VAT) attracted "hundreds" of individuals representing "a hell of a broad range" of retailers big and small from throughout the economy turned into a "vent session", Guardian Business was told by several who were involved.

Those in attendance at the Wednesday meeting expressed fears of VAT causing more Bahamians to shop in Florida, or in the "informal economy" that would not charge VAT.

Robert Myers, vice chairman of the chamber of commerce and chairman of the coalition, as well as attendee Rick Lowe, director/operations manager at Nassau Motor Company, said that some at the meeting threatened to "march" to express their anxieties over the new tax regime set to come into effect July 1, 2014.

"It was quite a spirited meeting," said Myers.

The 11 a.m. gathering drew owners and representatives of clothing stores, sporting goods stores, tourism excursion providers, and grocery retailers, among others.

"People are very concerned; they are looking for answers that the government is not providing and there's some people ready to demonstrate," said Lowe.

Coming out of the meeting, retailers, who have never before been represented by an association, have been encouraged to amalgamate and elect a representative who can represent their interests to the government via the coalition.

One attendee, who asked to be identified as Mr. Christen of Lebco Limited, said the government "has not seen Bahamian citizens organizing like this for many a year".

"The mood in the meeting was a complex mixture of exasperation and anxiety mixed with serious concern, but above all else, there was an overarching feeling of determination, determination to make sure that the voice of the business community is heard and the livelihood of their employees and the citizens of this country is protected.

"The retail and wholesale sector is the third largest employer in the country, after tourism and government.

Taxing retail and wholesale at an increased rate puts the livelihood of all those Bahamians involved in the sector directly at risk, especially as we are still in a weak economic atmosphere," added Christen, who said retailers were almost universally opposed to VAT in the meeting and he is "baffled" as to why the government is pursuing VAT at this time.

"VAT was rejected in Turks and Caicos recently because the British government studied its impact on that territory and decided it was unfeasible in this current global economic environment. The Bahamas and Turks are similar jurisdictions," he noted.

Christen called on the government to consult more closely with the business community.

"If the country needs to 'balance the budget', then it needs to ask the business community for its advice, because that is the sector of society that must find ways to balance budgets everyday they go to work. It should not think that the lawyers who got us here will have the answers."

Myers said that in his opinion, there must be a "plan" that includes the concerns of the retail sector.

"It can't be destroyed," he added, noting that while retail is a "protected" sector in The Bahamas it is another example of one that ostensibly benefits from concessions which are then eroded by other policies.

"That's where we've lost the plot - the right hand doesn't necessarily tell the left hand what it's doing," said Myers, referring to Freeport as another example of an area or sector purportedly provided "concessions" or protections that suffers from other competitiveness reducing policy decisions.

The vice chair added that many retailers expressed concern about the returning residents duty exemption when speaking of the potential for VAT to drive more shoppers to Florida. Lowe said that he does not see where consumer demand will come from if the government goes ahead with VAT.

"If you are sucking $500 million out of the economy and 70 percent of government worker's salaries are being garnished, where is the money coming from to keep the economy going?

It dampens growth and you are headed for more trouble. The government says they have cut 10 percent from the budget, but can they prove that to me?

They are lulling us to sleep on the one hand and jamming it to us on the other."

Recognizing the critical need for the government to turn around its worsening deficit and debt position, Myers emphasized that he sees the role of the coalition, as it moves ahead with efforts to organize the business community over VAT, as a delicate one.

His primary call is for the government to engage in meaningful dialogue with the business community as it seeks to find ways to plug its fiscal holes.

"We've got to be responsible. We've got to look at this from the 50,000 foot level and say 'no, it's not going away, we can't kick the can down the road'. "If we are gong to make a difference, we've got to come up with solutions."

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