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Chris Sinckler, Minister of Finance, Economic Affairs

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’ โ€˜goodโ€™ 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 โ€˜tweakโ€™ 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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  1. Why wunna frighten to call a spade a spade?
    DEM people ain’t no what DEM doing, plain and simple. Nuh lotta long talk.
    Why was December 1st chosen as the start date? Somebody like duh trying to rake in some quick dollars.
    Why de big rush a big bill due and DEM scrambling to get it pay before the 25th?
    How come bus fares gine up next year but VAT got to go up now?
    Yuh mean DEM cuddn’t wait until the New Year to increase the VAT and leh people enjoy duhself fa de last?

    As for the BL&P dem did robbing we blind from since October, some people bill double and others triple. In every case the people were adamant that they did not increase their consumption of electricity.
    BL&P can overcharge any customer, whenever they feel or need to and it seems that nothing can be done about it.
    They will then give you a credit a little later and that is the end of the story.
    If every business or individual that offers a service to the public did the same, lending agencies would be hard-pressed to find customers.


  2. The law of unintended consequences at work… ๐Ÿ˜‰


  3. What has many worried about the impacts of the budget is not the fact it is austere but more about VAT impacting the poor in the society given its regressive design and the poor/marginalized having to spend more. Immediately also thousands of people will become marginalized and when you add the band of the lower middle class who have lost the travel allowance tax free we have a problem.

    Interesting times ahead. The challenge is to restructure and survive at the same time, not an easy task for government.


  4. please do expect the same for BWA ,Lime, digicel, multichoice or directtv bill. Not to sure how Hire Purchase or leases will fall under this ROK do you have any advice ?


  5. @Anthony,

    All these things have to fall under the same rules. VAT on unpaid balances is now 17.5%. However, it is not beyond businesses to make amicable arrangements… but whenever it is done, the business has to pay that 17.5% on whatever amount is agreed on. Not very many businesses will take that loss unless they can recover it (or value) somewhere else.


  6. Anthony please show me the BWA bill which has VAT on it.


  7. Well folk I don’t know about wunna, but imo the time is ripe to put on we “marching shoes again”. We did it once and we can do it again. Better put Sir Leroy on standby notice.
    But wait, I forgot there for a moment that “proud” Bajans do not protest, they grumble, and grumble some more and then roll over and tell whoever kicking them to go ahead and kick them l’il HARDER! Dah is Bajans fuh yuh!


  8. water is zero rated. and while a value added tax is generally regressive, I would argue that Barbados’ legislation is adjusted somewhat for that. The extensive basket of goods which includes meats, vegetables and other staple foods should comprise the vast majority of people’s consumption. I am nowhere near the poor end of the spectrum and I have worked out that the VAT increase on food is such a marginal impact that it is hardly worth considering. That’s because we tend to buy fresh whole foods that are mostly zero rated – imported processed foods are unneccessary and unhealthy and hopefully people will migrate away from them.

    What I hope the VAT increase does is make people think twice about all these Blackberries and other gadgets that are unnecessary for many people that I see with them each day. I have no Blackberry and get by quite fine personally and in business. I don’t understand why my receptionist and a bunch junior staff are always glued to their’s – what on earth do they need to spend all that money for.


  9. @X

    They are hooked on a lifestyle i.e Facebook, Twitter and other social media. Same thing as far as food consumption goes. They watch the Cable, navigate the Internet and quickly buy in to alien lifestyles.

    Interesting to read in todays press retail spend is consistent with last year.


  10. @ X
    Ummm, yesss. And when fixed line phones first came to Barbados people were getting along quite fine without them too. Don’t lets forget the first automobiles, planes etc., etc. But what is the situation NOW? Isn’t a fact that if one did have have access to all those “new fangled” (ie new-fangled at that time) things TODAY that lots of people would be seriously disadvantaged? You see, what I am trying to say Mr./ M/s X is, just what is your point really? Should we never bother to use new and advanced technology because we “are getting along” just fine with what we already have?? So why did you even bother to buy a computer much less use the internet? Weren’t you “getting along” just fine without those before?? You really must be some comedienne! Look for a stage somewhere else to give your corny jokes!


  11. Barbados is part of this world and will have to suffer some of the pain that other countries are right now experiencing.
    De hood ,you can keep on your marching shoes because EVEN IF Owen Arthur becomes Prime Minister the same pain will have to undergone if we are to get out of this mess create by the hard economic times and decisions made by both governments overtime.
    Do not forget that Owen Arthur said that job number is one is Jobs. He then increase the government service way beyond its carrying capacity. He even went further to gain political capital by appointing all of them. Now the government wage bill is way above what it should be. He is now complaining that the government is borrowing $50 million to pay these same workers he employed.
    We could have been better off without those years where Owen borrowed for a rainy day while selling every piece of high quality land to foreign base persons to get FDI.
    We live a lie for fourteen years and now is the time to take stock and get back to basics. This government will become unpopular because of doing the right thing but Barbadians will see that it will help Barbados in the future.


  12. @ Charlie
    You said:- “Now the government wage bill is way above what it should be.”
    *******************************************************************
    Mr. Charlie, your comment was so full of holes that I was not going to even bother to reply but on second thoughts I wish to point out a few things to you.
    1) The wage bill might be higher but at least the country is getting some kind of retuns for the expenditure. Otherwise we would have those civil servants and their families on welfare and the bill would be even higher.
    2) What is the cost of government ministers (and other officers?) buying FIRST class airline tickets for all their air travel. Is there a need for so many to travel so often? What about video-conferencing for some of those “meetings”? Don’t remind me, if they use video conferencing technology then they can’t do any shopping ’till they drop at those “meetings”!
    3) What is it costing us, the taxpayers, to supply all those very expensive vehicles for ministers, judges et al to be CHAUFEURED around this 14×21 sized country?
    4) What is it costing the taxpayers to have so many ministers in government to govern so few people?
    5) What is it costing us to have all those materials and equipment “borrowed” from, and not returned, to MTW and other Statutory Corporations and ministeries?
    6) What is it costing us, the taxpayers, to have all those vehicles (buses, garbage trucks ambulances) just rusting and deteriorating simply because some minor part needs replacing?
    Give us some answers to these queries, Charlie, and then we can begin to debate. A Happy Christmas to you and all Bajans.


  13. @ David
    Could you please change “LIND” to “KIND” in my above comment in the second line of point #1 that I made? Thanks.


  14. David , you said:- “Since delivering the budget Sinckler has had to to clarify or reverse a few of the financial measures which he announced.”
    *********************************************************************
    Well Dave lets hope that this is another one of those that he needs to “clarify and/or reverse”. ๐Ÿ™‚


  15. @de hood

    Understood X to mean why should a 16 year old have a Blackberry when the parent is struggling to pay the light or water bills. As children growing up our parents had to forego the wants for the needs.


  16. @ David

    Point taken, David. But I am still in doubt as to if that is what “X” meant in the comment. ๐Ÿ™‚


  17. Opps :(. Sorry i forgot bwa has no vat. I was bit overzelous while going off on utilities


  18. I tired a dese idiots that does come on this site and politise everything. De truth is bajans hurting bad with the increase in vat which has cause everything else to go up, and then on the back of it we have no one to defend us from the utility companies .
    What the dems do, is instead of cutting public sector wages and laying off people like de do back in the 90’s, de raise the vat and at the end of the day you end up wid the same amount a money as if you did get a wage cut. C it fa wunna selfs


  19. I am yet ta undastan dis shoite calld a ‘interim’ bill dat de electrik cump’ny does charge me evry edda munt. it is nutton but hi-way robb’ry. Mr. Worm(e) leh dese metta-readers cum out evry blasted munt n bill me fa wah i use, not wah you n de udda tieves get up day n decide ta charg me n call um a ‘interim’. my ‘interim’ bill did $92. mo las munt. wunna cannnnn be seri’us. stupseeeeeeeeeeeeeeeeeeee


  20. BU,

    Are you aware, that the environmental levy which was applied at a rate of 3% on all imported items including some of those on which no VAT was charged.

    And are you aware that most all of the items in the basket of goods which are zero rated had environmental level on them at the same 3%.

    Surely you must be aware that on all these items when the 3% is taken off the price on which the VAT is applied would be lower and so the 2.5% increase in VAT should be of less or negative impact on those items.

    Now if this is the case, and I believe that it is, could you explain why in all of these discussions on the budget and its impact most of the detractors have conveniently omitted to mention this fact.

    BU, maybe you should do some analysis yourself and present a complete picture of what is going on. Surely, you must realized that if a minister of finance is faced with the problems in public finances that requires immediate action and you are faced with the option of raising a 150, million dollars in revenue or cutting expenditure by that amount to discipline your fiscal account which would you prefer:

    1. raise vat by 2.5 % and eliminate a few allowances

    or

    2. cut between 5000 to 7000 public servants and trigger a private sector blow out.

    Tell me which one you prefer


  21. Dis is just anuuder screw in de coffin, we consumers have no rights and get no respect from these corporations. I gine back to de coal pot and kersene stove. Back ta nature fuh muh. Everting is against de consumer dese days.

    Bonny sweet peppa
    how ya? Girl chile it did coldddd as shoite in Florida yesterday when ah did leffing. I was hoping dat de security did feeling de passengers up but like dem aint start dat procedure. I did forget ta ask if dem see anyting wrong wid muh heart or kidneys when dem did scanning muh.


  22. Little Angel
    You speak like a real ‘lil angel’ fa tru.
    Bless you.

    I is de ‘Lil Devil’.
    LOLL


  23. islandgal
    LOL. dis is de Yuletide season so I behavin maself. at leas, ah tryin. LOL
    Girl, I luv ‘nature’ too but not de kersine n koal-pot type. LOLL. ( i kno dat i bad)
    Glad ta kno dat ya get back to warm sunny B/dos. Welkum de mornin sun.
    Ya got time ta bake de jug-jug n grate-cake dat I kin get sum.I kin supply a tin a corn-beef ta put in de jugjug. LOLLL


  24. Yet more proof that the political class in BIM, who has the authority to regulate is no different from the whores occupying the US Congress. Welcome to the kleptocratic world of globalisation, where wrong is right and choke n’ rob is the name of the game.

    Didn’t the GOB a few weeks ago invested about $400k in youth culture? When will the country see a return on this and by how much? Isn’t this crunch time? Wouldn’t it have been WISER to invest this same money in the youth to teach them how to harness Solar Energy [SE] which would eventually benefit every household on the island and then these same yuts could traverse the C’bean and help their neighbors develop SE as well? …. and in this way cut the throats of the real parasites like BL&P and all the others who are just waiting to suck some more blood from the ignorance and dependency of Bajans. Or would it be better to see more bajan skanks on the world stage shaking their asses? Where are the scientific minds in Barbados because its only thru’ science that you can truly develop and build a strong sustainable culture/society.


  25. @hopi

    Our education is failing. We have created a system which manufacturers qualifications so that people can fill jobs. Our alumni are not being taught to embrace a philosophical outlook to life which would force themselves to ask the question upon graduating – how can I improve my society and the world?

    Brother Bush Tea has been preaching this ad nauseam, instead we have become embroiled in the non issue of whether we should build a society or an economy.


  26. Little angel vat is final tax of which part of what made the calculated amount is the environmental levy. final 17.5% > base 3% which i not even sure customs was charging. up to last year they still charge me 1%.

    the problem is they always wait too late for anything and can’t decide what they doing to do. they waited almost 2 year then complained about dodds payment. they waited 2 year and drove current accounts to dire levels. First they said no more children on psv then change their mind, first they going to buy back now they trying to sell bnb. They said over 500 million was due to government in outstanding taxes and vat, what ever happen to that?

  27. simply anonymous Avatar

    @X | December 8, 2010 at 12:16 PM |

    “I donโ€™t understand why my receptionist and a bunch junior staff are always glued to theirโ€™s โ€“ what on earth do they need to spend all that money for.”

    Your receptionist is young – you are an old geezer. when you were her age, you used to follow the trend too maybe not in everything but you did. so shut up and look for another example. She probably does not have the commitments you have and could care less ’til she’s older. that’s the benefit of being young

  28. simply anonymous Avatar

    @David | December 8, 2010 at 2:11 PM |
    @de hood

    “Understood X to mean why should a 16 year old have a Blackberry when the parent is struggling to pay the light or water bills. As children growing up our parents had to forego the wants for the needs.”

    are you serious? what 16 in Barbados would be working as a receptionist? stupseeeeeee……… 16 yr olds are still at school, college or UWI. He is talking about young adults. you should know better or at least pretend you know better

  29. simply anonymous Avatar

    @just observing | December 8, 2010 at 4:50 PM |

    you’re a foolish a…. or what? why should govt cut public servants wages. do you think they carry home a decent salary? the ones at the top could do with a wage cut not the ones at the bottom. the top bosses get entertainment allowances, travel , bills paid etc. those things can be removed. stop the overseas 3-day conferences that cost taxpayers over $10,000 a day; start paying for lunch at expensive hotels with friends and charging it to their depts as some work conference carp; stop


  30. Some of you are missing the point, an attitudinal change is required given how things are shaping up. There is the excuse that because one is young it absolves you from making sensible decisions which are relevant to the time.


  31. hold on a second, I am no luddite. my perception is that the vast majority of people that I see using blackberries in Barbados don’t use them from a productivity standpoint. They get them because having one is perceived as cool, and what is even cooler is spending hundreds more dollars everything RIM brings out a new model. I think it’s cooler to not waste their money on these types of items and to invest in their future through savings or investments in items that increase in value. If they insist on still spending that money then I have no problem taxing these fools with more VAT. Take it to 20%.

  32. simply anonymous Avatar

    @ Little Angel

    “Surely you must be aware that on all these items when the 3% is taken off the price on which the VAT is applied would be lower and so the 2.5% increase in VAT should be of less or negative impact on those items.’

    everyone and especially the thieves in the supermarkets, stores, BLP etc know this and heard Minister Sinckler explain the things should be lower but they ALL choose to think that bajans are backward and would not challenged their theiving prices. i went into Collins on dec 1 at around 1:30 p.m. they had part of the store blocked off. i esquired why and was told that they were in the process of changing the prices on the goods and some was completed some wasn’t. i was given an item and told that the higher price was already in the system but the item still had the old price. the White crooks probably had their staff working on independence day to increase the cost of goods that they did not but with the VAT increase. i went across to cave shepherd expecting to see high class robbery again but was told that they will not increase as yet. we seem to have a spirit of robbery hanging over Bridgetown and most business in Barbados. and also some items have much more than a 2.5% increase. how can toothpaste have an extra $1.00 on to it? check the before and after prices for your self. i only hope that one day something comes and washes away all this robbery of innocent citizens.


  33. @just observing
    “I tired a dese idiots that does come on this site and politise everything”
    ******************************
    That is one reason I was turned off from this forum for the last few months; prior to that I was impressed by the level of commentary (whether couched in bajan/standard English) and amused (and informed) by the some of the wicked comments. Then it started to feel like the call-in programs with the same ppl saying the same thing about every subject and if ya agree ya is a D if ya don’t ya is a B…..and then devolve into personal attacks.

    For my one part, the budget give me a big lash and an instant headache. I don’t have a problem with hardship, but it worries me that the implication of the measures have not been fully thought through; it worries me that money that you snatch out my pocket will be used for foolishness because you’re “playing to the crowd”; it worries me that a drink that cost $2 yesterday now costs $2.25 today – is this now an excuse for business people to raise prices and use the vat increase as justification? It worries me that crimes will be committed and “hardship” be used an excuse; it worries me that Bajans have forgotten how to cope (as evidenced by the PANIC after Tomas) and will do desperate things because they want to buy a BB for their child for Xmas instead of giving them 25c to use the payphone; it worries me that me and my generation have raised little brats that will not get thru this.

    Maybe I should change my handle to “Worried”……..

  34. little girl from down in d village Avatar
    little girl from down in d village

    Someone sent me a set of analysis and write up on the Budget done by accounting firms in Barbados. One of them said the measures introduced in the Budget will result in an 8.1% cut in pay for workers. Not being political, but that is a large amount to lose in these already hard times when you have a family to support and a mortgage to pay. We know that things are tight, but would not the Government achieve the same result by going after the millions in outstanding Income tax, Land tax, VAT etc – just a thought


  35. it can be even worse than that. let’s say you make $70k per year which probably represents a good chunck of our middle class. These are the middle managers and junior executives in the banks, inssurance companies, offshore companies whose salary would have been optimized to max out the allowances. Their current after tax income is about $4,800 per month. Come January it’ll be around $4,373. That’s 9.1% less!

    The impact on myself is a little less as I am paid a bit more than that. My family is struggling with how to shave 5% or 6% from our budget andf it’s a tough job. When I consider that many other people will have to find over 9% it makes me shudder.


  36. simply anonymous @ 10:11
    ‘old geezer’
    ya mek ma laff. murtherrrrrrrrrrrrrrrr

    simply anonymous @ 10:43
    you is a ass or wah? anytime you go anyway ta purchase a item, you GOTTA pay de price pun de item. doan mek shite-sport. dem would gotta calll de police fa me. I payin de price dat pun de item unless it is human error. Kah da tiefin ass. i tawt you did tuffa dhan dah. stupseeeeeeeeeeeee. I doan k wah in de computa or not. my mudda could be in de computa, i still payin wah i see pun de item.


  37. @Fence Setter

    You are correct to opine that we have become too politically partisan in outlook however when you withdraw from the debate who do you think are the winners and the losers?


  38. David
    Almost everyting in B/dos evolves ’round politics. Stupseeeeeeeee, doan leh nabody distrack de BU fam’blee do. If i gine in de toilet sumtimes I does ask myself, ‘uh wonda which politician gine in de toilet now too? fa tru. even dat does evolve roun politics man. LOL

    A Blessed Yuletide Season to YOU n Yours from Me n Minez.


  39. David
    Fence Setter is sooooo right, the quality of this blog has deteriorated badly and has now become a rumshop conversation pit. Unless you cuss one party against the other you are labelled and the abuse comes with it. Recently I am being turned off by the level of convesation; is this what Barbados has fallen to? Can “so-called sensible people discuss matter in a more matured way? It seems as though we are moving towards a Jamaica type of poiltics, where you MUST support one party or the other or accept the penalty. I fear that if this trend continues, there will be disturbance during the next by-elections or general elections. For many many years Barbados was admired for the peaceful way we conduct elections, this new breed of yardfowls seem bent on changing that.


  40. What is amazing is that these yardfowls are out there raising a stink for one party or politician against the other, while these same politicians are ALL in bed together. Recently I had to conduct some business with a prominent politician and was referred by that person to a business partner from the other party. You wouldn’t believe how these two persons abuse each other in public but behind the scenes are close business partners, and their yardfowls out there ready to kill for them. GROW UP BAJANS!!!!!!!!, STOP LETTING POLITICIANS MAKES FOOLS OUT OF YOU. POLITICIANS LAUGHING AT WE.


  41. Correction
    Second last line” stop letting politicians MAKE fools out of you .”


  42. @ David | December 8, 2010 at 2:11 PM |
    and @ de hood

    A parent or a family member over and away could have sent and is paying for the 16 year old Blackberry.

    Be as it may, and in some cases regrettably, some people do not understand the difference between wants and needs.


  43. @The Scout

    On BU we have more than political blogs to discuss. Second, Bajans have always been passionate about their politics.


  44. David
    Passionate is one thing but being downright stupid is something else. It’s time we raise the level of discussion. Must we remain in the 60’s type of political discussions? After 44 years of being a nation, we’re still in our infantcy in our political development. I blame it firstly on the politicians from both parties, if they lift their standard, then their followers would be challenged to do likewise.


  45. Scout
    It has always been and will always be. Nutton new like David hinted. We in doin a ting diff’rent. 44yrs in got nutton ta do wid nutton. you tink dat 44yrs could change a man mentality? dis did gine on from time immemorial. doan lose na sleep bro. and I doan tink we would evva get violent at elections. doan pray dat pun we man. we is a peaceful, docile peeples man.


  46. Bonny Peppa
    I ain’t praying it on anyone, I just hope it never happens, but I’m seeing a trend developing in Barbados which I don’t like, as if I’m not a supporter of your party, then I’m your enemy. It started in Barbados, like in Jamaica, with identifying certain colours with certain parties, so if you wear that colour clothing then that shows which party you belong to. Today, even on the call-in programs especially with that clown Peter Wickham, callers are being asked which party they are supporting. Then on this blog, as sone as you don’t accept everything a party does, you’re labelled a supporter of the other side. I would like individuals to have a mind of their own and stop allowing politician to think for them. Some of these politicians can’t even think for themselves farless for others.


  47. @Eye Spy
    “A parent or a family member over and away could have sent and is paying for the 16 year old Blackberry. ”

    You see this judgmental thing that we get on with? It is not very nice behaviour. I am so glad that you raised this because there was a time in Barbados that if a Welfare Officer walked into the home of a person who has TV, Video, microwave, etc. the Officer would refuse to give that person welfare.

    A careful check revealed two things:
    1. Most people do not like going to welfare because they are treated badly or in less than a professional manner;
    2. All those people who apply for welfare who have well furnished and gadgeted homes, got all through a barrel; never spent a cent.

    One day, a lady called me and ask me to come by her house. I went because I was accustomed assisting her (need not say more) and to my surprise, this lady that never had anything to speak of handed me a new brand laptop. The woman had no idea what it was, she called me because she knew that “whatever it was, I would find some use for it”; sent by her family from overseas.

    Of course, in turn that made me look like I had champagne pockets.


  48. ROK
    I got a ‘lap-dance’ fa you. when ya cumin fa it?


  49. Bro Scout
    Dah in nutton new. you really tink dat bajans sa ig’runt?

  50. simply anonymous Avatar

    @Bonny Peppa | December 9, 2010 at 3:55 PM |

    i forgot what i was taught in school. foolish me, i must be getting old. thanks for the reminder, if it ever happens again i will know what i have to do

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