Free National Movement (FNM) Deputy Leader Loretta Butler-Turner criticized the government yesterday for not yet bringing value-added tax (VAT) legislation to Parliament for debate.
She said Minister of State for Finance Michael Halkitis' statement that the legislation will be brought to the House of Assembly by the end of next month will leave too small a window for public consumption before VAT's proposed July 1 implementation date.
The Long Island MP said the fact that the legislation is not yet complete is further evidence that the Christie administration is "disorganized" and lacks credibility.
"You only have to look at them and see how many times they said we were going to get this legislation," she said.
"Clearly, anything that is going to be presented in such a short time frame is going to [cause] nothing but confusion.
"They said they were going to give us six months, at the end of February that gives us a window of four months. There has been no education whatsoever. How can we be educated on something we haven't seen?"
On Monday, Halkitis told reporters that the public's slow response to the VAT white paper is partly responsible for the government's delay in tabling the legislation.
The government issued the white paper in February 2013.
Halkitis could not say when the VAT bill will be brought to Parliament. However, he said it must happen by the end of February to prepare for the July 1 start date.
Halkitis said Prime Minister Perry Christie is still listening to alternative suggestions to VAT and assessing how those tax systems would impact the overall economy.
With less than six months until VAT's proposed roll out, Butler-Turner said the government appears to be rushing the new tax. She said the business community will not have enough time between the presentation of the final legislation and regulations and VAT's start date to fully understand the implications of the new tax.
She said VAT will likely lead to an economic contraction due to an anticipated falloff in consumer spending and private sector layoffs.
Several prominent businessmen have launched public campaigns, urging their customers not to support VAT.
"I think the business community feels how every other Bahamian feels," Butler-Turner said. "They feel confused. When you have that push back from the business community, it clearly shows a huge disconnect."
Butler-Turner suggested the government wait until the 2015 fiscal cycle to introduce the new tax.
The government has said VAT is necessary to bring down the government's massive deficit and get the country's spiraling debt under control.
Ministry of Finance officials estimate that VAT can generate about $200 million in annual revenue.
The government has proposed a flat tax rate of 15 percent for most sectors; 10 percent for the hotel sector and discounting customs duties on most items by at least 15 percent.

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