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2015 Barbados Budget…

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Chris Sinckler, Minister of Finance
Chris Sinckler, Minister of Finance

Today is Budget Day in Barbados the 15 June 2015. For many what is hidden in the ‘Black Box’  in recent years seems to be of little interest to the citizenry compared to what occurred in the 80s and 90s. The politicians will grab their 30 minutes in the spotlight rabbling as if programmed in support of their side and many citizens will retreat to channel surfing and scan the news for a summary of what transpired.

Should we blame flagging interest by Barbadians  in what our elected members do in parliament on the need to aggressively teach Civics in our schools?  What has become evident to BU for some time now, we have become disengaged from our role as the Third Estate.

Some of us will listen to some of what Minister Chris Sinckler has to present at 4PM.

  • PRESENTATION OF THE FINANCIAL STATEMENT AND BUDGETARY PROPOSALS 2015 DELIVERED BY THE HON. CHRISTOPHER P. SINCKLER TO THE HOUSE OF ASSEMBLY MONDAY JUNE 15, 2015, 4 PM

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151 responses to “2015 Barbados Budget…”

  1. Prodigal Son Avatar
    Prodigal Son

    In every presentation this liar has made since he became MOF, has he not been saying the same thing………..we have stabilised the economy, it is on a growth path, the doom and gloom people have been saying that the dollar has to be devalued but we have not…….same old lies.

    But tell me something, if the economy is growing and is so good and according to the liar, all of the indicators say so…..tell me why the QEH cannot be given funds to buy the necessary basic supplies, the Transport Board cannot buy buses to transport poor people, the nation’s children are at home suffering as a result of their parents being too poor to pay the burdensome UWI fees, government would not pay its bills, people are without jobs and suffering. Tell me why these things are happening if the economy is doing so well?

    Bold faced LIAR!

  2. Pachamama Avatar
    Pachamama

    Well, at least we have to give him some credit for his personal health achievements, but there is much to learn, still.

  3. Prodigal Son Avatar
    Prodigal Son

    Does anyone know if any Barbadian student ever receive any of the bursaries that were supposed to be given out for the last semester?

  4. Ping Pong Avatar
    Ping Pong

    Shit , I pay a effing load of taxes but because my household income is over $25000/ year, my child is not eligible for a partial tuition grant! The household income of child with a mother who is a receptionist and a father who is a policeman is probably over $48 000/ year. These are hardly well off persons.

  5. Prodigal Son Avatar
    Prodigal Son

    Stinkliar is a bold faced hypocrite.

    He lambasted the BLP for giving Barbadians an ease on gas with the tax ease and according to Stinkliar, he had to clear the 80 million by gourging out our eyes.

    He corrected this by canceling the waiver to us. Ok.

    But he finds a tax on the books that the BLP never implemented, so why did he had to implement it then? Dont understand the man’s logic!

    His intelligence shone this evening………..the man cannot read numbers!

  6. Ping Pong Avatar
    Ping Pong

    After all the fancy talk, the Government has increase the tax burden by some $200 million. I believe the G’ovt has attempted to spread the burden of this tax increase as equitably as possible . However I strongly believe that those that pay should also benefit (e.g access to health care and to educational programs) not be made to pay twice.

  7. David Avatar
    David

    @Ping Pong

    Your position is logic based but you have to factor the current state of play. The government is cash poor and those who are identified to have the capacity to share a greater burden on behalf of the less fortunate Bajan have been asked yo do so.

  8. PLANTATION DEEDS FROM 1926-2015 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS,DLP AND BLP MUST GO VOTE CUP Avatar
    PLANTATION DEEDS FROM 1926-2015 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS,DLP AND BLP MUST GO VOTE CUP

    DAVID,@ WE WERE IN THE HOUSE today, and even so the MOF is a crook liar and scumbag , we where happy to see how well he look in his suit, Sure look better than MIA and her girl friend next to her,

    We also seem to see the Crook Richard Byer Back in the House to support the Speaker crook ,

    We heard first hand how well the White People are doing in Barbados with the Hotel and tourist

    Then we heard of all the money in VAT collected ,, the pain of the people, Now we also saw Nation Papers there and we spoke to them with the Sheriff in town who gave Notice to the police .

    there were only 18 people in the House today,

    Keep in mind,

    1066 Rule, 1966 BDS. 166 sq miles, 166 pages of land Fraud Act, Today is also 166 day of the Year with about 199 to go.and we now have 18 years of VAT fraud,

  9. Tell me Why Avatar
    Tell me Why

    Several projects expected to start soon:

    Sam Lords Castle in September – 200 million

    Royal Pavilion – 30 Million

    Sandals Casurina to add 200 new rooms – 100 million

    Sandals Almond – 200 million next year

    We keep hearing about the millions these businesses are planning to spend. Are the amounts mentioned above include the lucrative concessions that have been offered? We want to know the final nett figure that will be spent. $200 million might turn out to be just $100 million.

    Another thing. Where is the 45 million collected by the CBoB resting at the moment. Was it secretly included in the Budget to fool us that we have an $80 million surplus in one year? Come on MoF. Who you think you fooling.

  10. Ping Pong Avatar
    Ping Pong

    David
    The so called “better offs” are already carrying a greater burden. They pay more taxes. The so called “lesser offs” are benefiting but let those that pay, benefit as well. However let us identify these persons with the capacity to pay. A policeman and his teacher wife? An unmarried nurse with one child? An administrative assistant (once known as a clerk/typist)?

  11. islandgal246 Avatar
    islandgal246

    Boy oh boy so cell phone tax has finally come to light. David Thompson had announced it but was never implemented. Now to show how these intelligent people are they feel the public will continue to use the phone service to call and talk to dem friends and pay for it dem got another thing coming. Dem ent hear bout whatsapt messenger,skype, magic jack, google talk, viper etc where you can call using wifi? I will be using wifi from now on to place calls and send messages. Soon from now yuh gine hear dem gine tax free wifi. SMH.

  12. Ping Pong Avatar
    Ping Pong

    Sinckler removed the municipal waste tax but increased land tax. Vacant parcels (which produce no waste) now have to pay a higher rate of land tax up from 0.6% to 0.8%. Vacant parcels attracted no waste tax. I don’t know what amount of revenue the waste tax was expected to earn but the present land tax increases and the tipping charges amount to $44 million increase in tax.

  13. islandgal246 Avatar
    islandgal246

    As expected the land tax will be raised to replace the solid waste tax so the same old same old.

  14. NationBLPNewspaper Avatar
    NationBLPNewspaper

    I congratulate CBC for having all sides on tv tonight to debate the budget : Mascoll spinning for the opposition, Senator Ince spinning for the government and Eddie Abed spinning for the Chamber of Commerce.

    Unfortunately, the Nation newspaper will used its one sided line up of political operatives : Albert Branford, Pat Hoyos, Ezra Alleyne etc to spread their usual anti government tirades while offering no “Guest Columns” to give their readers an alternative view.

    As one writer said recently- when you do not read the newspaper you might be uninformed but when you read the Nation daily, you will be misinformed.

  15. Bajan in NY Avatar
    Bajan in NY

    @ Ping Pong,

    The minister obviously believes you shouldn’t buy land unless you have the ways and means to build. Presently I pay approx $2,000 land tax (after discount) and and equal amount to keep the lot clean every year.
    I got the message, so I’ll put it up for sale.

  16. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    A certain future coalitional regime of Barbados – and of which the PDC will be part – shall ABOLISH ALL Taxation in this country, and shall thereby help to usher in a post-Taxation society for Barbados.

    Such a coalitional regime shall make sure that the government of Barbados – instead of its continuing to evilly diabolically steal and rob the relevant people, businesses and others of countless portions of their remuneration properties – shall put in place – and greater and fairer than ever before – those commercial/financial strategies that are necessary for it to help realize the provision of far greater goods and services than now to persons, businesses and other entities who – under the same commercial/financial contracts – will provide or help provide the said government of Barbados with far greater of its own nominal incomes and nominal revenues than now seen, and too shall put in place – and greater and fairer than ever before – those financial strategies and programs, eg, A National Institutional Productive Money Transfer Scheme/A National Institutional Non-Productive Money Transfer Scheme, that are necessary for the government of Barbados to help secure greater and better access than ever before to money within the core financial system of this country.

    What is absolutely certain is that with these two intellectually and politically backward, bankrupt and discredited DLP and BLP governments implementing -over the last 25 to 30 years – so many adverse and horrific political economic and financial measures and policies, and with those types of measures and policies leading to such disastrous deleterious long term social political economic and financial effects upon the vast majority of people of this country, Barbados will – in the next 6 to 11 years – become more and more a virtual failed state – like Jamaica is currently – in so many regards, on the current trajectory.

    PDC

  17. Fractured BLP Avatar
    Fractured BLP

    A very all embracing budget presented in the circumstances.

    Kudos to team .

  18. Ready to Vote Avatar
    Ready to Vote

    David June 15, 2015 at 5:28 PM #

    Several projects expected to start soon:

    Sam Lords Castle in September – 200 million

    Royal Pavilion – 30 Million

    Sandals Casurina to add 200 new rooms – 100 million

    Sandals Almond – 200 million next year

    to name a few are expected to boost the economy

    Sinckler still counting chickens before they hatch?

    What about the St Lucy Project?

    What about Four Seasons?

    What about The Merricks Resort?

    What about the new cruise ship terminal?

    What about the new hospital?

    What about the St John Polyclinic?

    What about the new Sugar factory?

    LMAO

  19. Bush Tea Avatar
    Bush Tea

    How to identify a brass bowl

    ..Tell him the same story every year about how good things are ‘in the circumstances’.
    ..Give him a list of accomplishments to be started shortly
    ..Call names of international organisations just waiting to bring millions to Barbados
    ..Tell him his tax refunds are being placed in envelopes
    ..Take credit for cold-ass weather in Europe and North America this year
    ..Claim a ‘primary surplus’ (whatever the shiite THAT is..)
    ..blame the courts for not pursuing justice with CLICO
    ..Say NOTHING about last year’s promises

    then…
    ..Increase Land taxes, VAT taxes, garbage taxes, and milk and sweet drink taxes (now you stop drinking them…) to the tune of $200M
    ..Come up with ZERO creative productive enterprises
    ..Come up with NO solutions to critical national problems
    ..brag about your ONLY accomplishment to date (to cease eating like a damn pig)

    A brass bowl is the joker who will somehow believe the stink liar’s story again this year…….

  20. balance Avatar
    balance

    Say what you like Bushie but Mr Sinckler deserves some credit for taking on an unenviable task under the circumstances

  21. David Avatar
    David

    The MoF stated this would be a growth budget. What has he based his presumption? The budget took $200 million and gave back $4million. A few of the revenue initiatives we have no problem with like the sweet drink and cellphone tax, these should have been in place a long time ago as well as a fat tax on KFC, Chefette and the others. BU sees this has a rolling of the pitch for next time around in preparation for reelection.

  22. David Avatar
    David

    A reminder the text AND audio link updated to the blog for those who want to suffer through 4 hours.

  23. David Avatar
    David

    Extracted from Facebook, appears to be a very frustrated person:

    Jesus christ I wish I went university, got ah degree then became a minister…..how else would I know that the only rassole way to earn revenue is by coming up wid de ingenius plan of further taxing poor people? A tax on liard rassole politicians……10% tax per lie……be christ we wud even got enuff money ta pay for we republic and ah refurbished Culpepper island for all de alpine goats…….Kelly wud get he airport, de pm wud lose next elections but he wud be set for life, de fine ants minister wud be able to pay for “healthy” weight loss procedures, the privately owned SBRC would get pay meaning the local owner cud finally buy his mega yacht and more “I does look out for black people” fake ass air time, zr vans will be replaced with state owned robot drivers from de ishop and de education minister would be able ta fly in creflo dollar, benny hinn and td jakes every munt ta keep way Charlie from de lil school fuckers. I does dream big and bold is cunt……ah Liabetic tax is what we want on all public officials…..by de fucking way, de lottery does boast paying out over 10 -20 million ah year…..dem does get tax too? Where all dis money does go? Anyhow, bout time I wipe my ass and get off dis toilet……de government still need my ass for further shafting.

  24. David Avatar
    David

    The MoF confirmed those receiving tax refunds late will be ‘rewarded’ with interest, surely this is not correct.

  25. David Avatar
    David

    @Ping Pong

    Understand your concern, the government’s rationale for its decision is obviously about cost savings by shifting more weight (taxes) to broader shoulders. Don’t forget it is all about reducing the deficit.

  26. are-we-there-yet Avatar
    are-we-there-yet

    The best budget presented by the DLP Government since it came to office. However, the usual spin was ever present and there needs to be a thorough look between the lines and at the statistics presented to see where we are really heading.

    But, the same type of Budget would have been presented by “Ding ding” if he were MoF.

    The conditions that underline the country’s apparent economic progress in 2014 / 2015 were the drastically reduced oil prices, which affected the deficit positively and had numerous positive spinoffs in several of the productive sectors and the very cold 2015 winter in the north.

    The budget therefore was a reasonable one despite the numerous missteps of the Government itself which Artaxerxes can spell out for BU.

    The highlight of Sinckler’s presentation for me was his linkage and spinning of his current personal success in his fight against obesity with the management of the DLP. Good PR!

    But I am looking forward to the debate and especially Mia Mottley’s, Owen Arthur’s, Dennis Lowe’s, Donville Inniss and Toppin’s presentations over the next few days.

  27. Pachamama Avatar
    Pachamama

    Wait boosie! Where is the DLP’s chief spokeswoman on all matters, AC

    Don’t tell us that she was so consumed by the sameness of a presentation yesterday that she was sent into an eternal bliss. LOL

  28. Artaxerxes Avatar
    Artaxerxes

    Bush Tea June 16, 2015 at 6:14 AM #

    “..Claim a ‘primary surplus’ (whatever the shiite THAT is..)”

    Don’t worry about that, Bushie. A primary surplus results when the government does not include net interest payments on government debt.

    It’s just financial reporting gymnastics to make us believe the government has significantly reduced the fiscal deficit.

    If they had actually reduced the deficit, there would not have been any issuance of bonds and treasury notes.

  29. Backstage Brass Avatar
    Backstage Brass

    How can you claim to want to support small business development and increase the VAT threshold to B$200K? This is a major disadvantage to small business owners as they cannot recover all of their input VAT, which means this now becomes a cost of doing business to either be passed on the customer or taken from profits of the operation.

    This is what happen when you have people with no practical experience just mouthpieces willing to regurgitate anything so long as it sounds good.

  30. hamicb65 Avatar
    hamicb65

    @ are-we-there-yet June 16, 2015 at 7:04 AM #

    I just calculated the land tax on my little piece of the rock will move from $2,160 to $2,880. This is more than a three-fold increase since the present govt. came to power. I pay approx $2,000 to have it cleaned twice a year.
    I’ll put it on the market, the govt can have it cleaned and collect the cleaning fees and taxes if/when it is sold.

  31. Artaxerxes Avatar
    Artaxerxes

    are-we-there-yet June 16, 2015 at 7:04 AM #

    “The best budget presented by the DLP Government since it came to office. However, the usual spin was ever present and there needs to be a thorough look between the lines and at the statistics presented to see where we are really heading.”

    AWTY, I have to agree that some aspects of the budget were good.

    I am in favour of the government’s attempt in making ALL business owners pay taxes. This should be extended to vendors, freighters, and all those individuals that offer goods and services in this island, but do not pay income tax or NIS. Yet, they believe it’s their right for them and their children to benefit from free transport, health care, education and all the amenities afforded to those of us who pay taxes are afforded.

    However, although I agree with the taxing of “sweet drinks”, this move could have some repercussions for that sector. Firstly, the introduction of taxes on the business and their products would have to be passed on to the consumer, which ultimately makes the product much more expensive. Obviously, this would lead to a reduction is sales.

    Secondly, a reduction in sales would lead to less profits, causing the manufacturer to implement cost cutting measures. Unfortunately as a result, employees would either have to work at reduced hours or be retrenched.

  32. Pachamama Avatar
    Pachamama

    We are still minded that OSA ‘understands’ the local economy better than most. We are unaware about his input but it’s not a bad thing that the DLP has access to his knowledge, as it is, although we would have preferred a coalition government instead of these seamless DLP/BLP realignments, deviations.

    Somebody above, we think Balance, urgues that OSA was never a real BLPite. That case is difficult to sustain. It presupposes that being a BLP or DLP member is somehow genetic or that once one joins a party that action is irrevocable. Balance is obviously a purist. He’s also tribalist of the highest order!

  33. Ping Pong Avatar
    Ping Pong

    Given the massive tax concessions given to Sandals and then reluctantly extended to the rest of the tourist industry, how does tourism which is the main if not only foreign exchange earning sector contribute to the financing of Government’s operations?

    In other words no matter how well tourism performs, Government revenue will mainly depend precariously and onerously on what can be extracted from ordinary Bajans. Bajans thus will pay the cost of security, maintenance of the natural and social environment, the marketing of the island etc while the so called “investors” walk away with the profits.

  34. ac Avatar
    ac

    All Barbadians who stepped up to the plate with a sense of patriotic duty and civic responsibilty to make sacrifices and to support govt efforts to protect this country from the depths of economical despair to a developing path of security and stability should be proud and applaud selfs for their galliant effort
    To those who are disheartened and disgruntled and have lost their commitment to be patriotics and rather be soldiers of a political party without a feeling to care or be obligated to country ac says take time out take a look in the mirror and do a thorough inventory of self.
    Two thumbs up to govt for not giving up hope when others said the country was beyond hope

  35. David Avatar
    David

    @Ping Pong

    There is the domestic economy and then there is the fact that we need to pay for almost everything we eat, constructions etc. The budget was about keeping the deficit under control (200 million in taxes) and keeping a dampener on forex demand. Still searching for growth initiatives. Was disappointed the MoF did not address the removal of minimum savings rate and what is his (government) expectation unless we missed it. Why not use the grand stage to signal to the market. Given the importance of the renewable energy sector was hoping he would have addressed many concerns raised by the stakeholders. All in all the middleclass continues to carry the weight of the austerity as Ping Pong has been pointing to.

  36. David Avatar
    David

    @Artax

    We can’t evaluate everything with a financial consideration. NCDs have been causing havoc on Barbados for years, like the PSV sector we need to deal with the problem once and for all. We endorse the budget initiative although it needed to go further.

  37. David Avatar
    David

    And through it all the dishonorable and despicable Michael Carrington presided. What cricks!

  38. David Avatar
    David

    @Backstage Brass

    Raising the threshold is good.

  39. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ ping Pong

    You said “In other words no matter how well tourism performs, Government revenue will mainly depend precariously and onerously on what can be extracted from ordinary Bajans.”

    In a nutshell we have been given a budget which is like those 3card shuffles, much sleight of hand, faster than the eye can see, more of the same as Bro Bush Tea and others has/have pointed out.

    I HOPE that the other ministers will append something to this Jenny Craig Slimming Act that Buffalo Sinckliar has brought.

    I EXPECT HOWEVER that nothing will be added and like the batsmen on the West Indies Team, the BVHKUNTS will come to the wicket and make a duck during their painful follow-ons

    Where is the studied diversification that is critical for our mono economy that has been lucky from Independence?

    Where is the alternate growth, crafted cohesive import substitution, agriculture, aquaculture hypnotics ?

    Where is the soundly thought out Waste Management strategies? Simple things like separation at source? Proper evaluation of competencies of WTE PROVIDERS instead of good doggie suckers? Proper evaluation of resilient SsA dump trucks instead of how much wuk fuh wuk I de minister vine get?

    What is the cvntry’s Renewable Energy plan? Just low energy cuntsumption lights? Or RE plants installed at our family’s homes? Or the ole people who did vote fuh me during de last general election when we’re it not fuh Buffalo Sinckliar, I Sudan Los my seat? Instead of choosing the most needy?

    Where is the investment in the HR that we spend $500million a year to educate showing its return?

    Will we continue to hope that the policy of the ingrunt minister of edukashun WeJonesing of impregnating more people so that the tax paying population will increase, will manifest?

    Over the next 48 hours I can bet $100 that not one idea that will provide additional returns will be presented, IN ANY SECTOR, WILL BE FORTHCOMING,!!

  40. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    Dis predictive text pun dis iPad down like Bajan and does mek me look like an asinine cretin or AC

  41. ac Avatar
    ac

    There is very little wiggle room left for the Mottley consortium to criticise the govt efforts to stabolize has worked and most of the leakage has stopped .Growth initiatives have come front the back burner and has been given enough fuel for production . Clico a burning and contraversial issue has been given renewed life with a wining strategy implemented for policyholders.

  42. Artaxerxes Avatar
    Artaxerxes

    David June 16, 2015 at 8:49 AM #

    “We can’t evaluate everything with a financial consideration. NCDs have been causing havoc on Barbados for years, like the PSV sector we need to deal with the problem once and for all. We endorse the budget initiative although it needed to go further.”

    Point taken, David. So we will tax the price of “sweet drinks” out the reach of most people in an effort to protect them from contracting diabetes and other NCD.

    So, with this in mind, can you tell me the rationale in the government spending millions of dollars to revitalize the sugar industry?
    One may argue this will bring in foreign exchange and create jobs, but on the other hand we are taxing people out of jobs.

    Essentially, we are basically saying these beverages are the cause of diabetes. If I were to follow the logic behind this policy, why stop at “sweet drinks and juices” alone.

    Don’t you think tax imposition consideration should have been given to sweet bread, turn-overs, jam-puffs, rock cakes, pone, cakes, currant slices and ALL other pastries. Then they are jams, marmalades and jellies. How about the Caribbean Confectionery Company that makes all those sweets? Should there not be an increase in taxes on ALL chocolates and confectionery imported from Trinidad?

  43. millertheanunnaki Avatar
    millertheanunnaki

    @ Artaxerxes June 16, 2015 at 7:47 AM
    “I am in favour of the government’s attempt in making ALL business owners pay taxes. This should be extended to vendors, freighters, and all those individuals that offer goods and services in this island, but do not pay income tax or NIS. Yet, they believe it’s their right for them and their children to benefit from free transport, health care, education and all the amenities afforded to those of us who pay taxes are afforded.”

    Nothing wrong with your support of this measure. I have been calling for such a tax clearance regime for some time now.
    A tax jurisdiction like Barbados with such a commitment to universal social entitlements to its citizens should ensure those with the ability to pay should make their fair contribution to the general tax pot. Also, it behooves an country with a so-called educated and sophisticated population to put in place a regime that minimizes tax evasion at the expense of the State to meet its fiscal and social obligations.

    The problem, Artax, is not the lack of a tax clearance regime but its enforcement.
    It’s a matter of who will guard the guards.
    Such a tax clearance regime will not apply to certain individuals in this little corrupt incestuous Barbados. Those with ‘well-heeled’ political and social connections will continue ‘to operate above the law’.

    Do you really think the BRA will dare to conduct tax audits into or demand tax clearance from the likes of Leroy Parris or Maloney? Just cast your mind back to the position taken by the PM with respect to the financial shenanigans of Speaker Carrington?

    That’s the problem with all of these high sounding fiscally altruistic proposals. Just a load of words shouted in Parliament ever so but signifying nothing.

  44. David Avatar
    David

    @Artax

    Maybe the ubiquitous sweet drink is a start. Next the fast foods who are making a mint, a good source of campaign financing. If people want to eat themselves to death, let them pay.

    >

  45. Luxotica Avatar
    Luxotica

    David

    How is raising the threshold a good thing? Have you ever run in business in a VAT based economy?
    Don’t jump on the bandwagon because it sounds good. RAISING THE THRESHOLD TO BDS$200k IS A TERIBLE THING FOR SMALL BUSINESS DEVELOPMENT AND EXISTING SMALL BUSINESSES, TRUST ME.

  46. Luxotica Avatar
    Luxotica

    The only reason this is being pursued and recommended by the IMF is because business below Bds$200K make up the majority of VAT refunds outstanding by the VAT Department/BRA.

  47. David Avatar
    David

    “The only reason this is being pursued and recommended by the IMF is because business below Bds$200K make up the majority of VAT refunds outstanding by the VAT Department/BRA.”

    Why don’t you explain why it is bad for small business.

  48. St George's Dragon Avatar
    St George’s Dragon

    It’s extra cost for small businesses.

    With VAT registration:
    Business bills client $1,000 and also charges $175 VAT
    Business incurs VAT on gas bill of $50
    Business pays $175 less $50 = $125 to BRA.

    Without VAT registration:
    Business bills client $1,000 and no extra VAT
    Business incurs VAT on gas bill of $50
    Business ends up paying $50 VAT on gas

    There is a marginal saving on administration in not having to submit VAT returns.

  49. Artaxerxes Avatar
    Artaxerxes

    Backstage Brass June 16, 2015 at 7:40 AM #

    “How can you claim to want to support small business development and increase the VAT threshold to B$200K? This is a major disadvantage to small business owners as they cannot recover all of their input VAT, which means this now becomes a cost of doing business to either be passed on the customer or taken from profits of the operation.”

    Those firms below the threshold are able to sell domestically at a specific consumer price (which reflects the payment of tax by those firms above the threshold) but are unable to reclaim credit on inputs.

    Unfortunately, research relative to determining the optimal threshold for VAT, revealed firms above the threshold may attempt to avoid registration by tax evasion or artificially sub-dividing their business across smaller “related firms” or “paper companies.”

  50. Luxotica Avatar
    Luxotica

    David

    VAT also has a significant hidden benefit in that the VAT money collected by small business acts an information line of credit until the due date for the VAT filing. VAT is one of the best things for a small business and increasing of the threshold will be MAJOR blow to small businesses.

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