
Rookie Minister of Finance Chris Sinckler has delivered his first budget and admittedly it was at a difficult time. BU does not have the expertise to apply the required analysis to determine if it was a’ โgoodโ budget or not. Seems oxymoronic for people to be labeling an austere budget as good anyway.
Since delivering the budget Sinckler has had to to clarify or reverse a few of the financial measures which he announced. It is not unprecedented that a Minister of Finance would have to โtweakโ his budget but one senses that the impact of this budget has not been adequately assessed or anticipated.
As an example the following note was received from a BU family member.
I just received my light & power bill for NOVEMBER (last month) and low and behold I am being charged a rate of 17.5% V.A.T. My bill is dated Dec. 01, 2010. Now David, this is for energy used for the month of NOVEMBER when the V.A.T. rate is 15%. Why should they be billing me at the new rate when the electricity I consumed was for a period when the old rate was applicable?
I called the company and was told that they checked with the Vat office and was told that as long as the bill was DATED after the 30th Nov then the new rate was to be charged. How could that be right? As far as I am concerned I used the energy in NOVEMBER and therefore the 15% rate should be applied for that period.
Do you clearly see the point that I am trying to make? I don’t know if ROK from BANGO could raise this point with any one and have the anomaly corrected. The FTC seems to agree with BL&P.
Thanks as always.
Here is the response from BU family ROK.
It has to do with the date of the bill. Even though the electricity was used in November, the date on which he pays, matters. This is part of the VAT Act. If the date of the bill was 30th November, the VAT would have been 15%. However, the problem is that even if the bill was dated 30th November, he would have paid in December and that would have been a problem for BL&P because it has to pay VAT at the going rate when it is collected.
In other words, all the money they (BL&P) collect in December is subject to 17.5% VAT. Also according to the VAT Act, those who owe for two or three months and pay in December will have to pay 17.5% on arrears.
Is this what Minister Sinckler intended?





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