FNM calls on gov’t to cut travel and expand social welfare
NASSAU, BAHAMAS — Opposition Leader Michael Pintard yesterday called on the government to immediately reverse its decision to reinstate VAT on medicines, food supplies and other items that had been previously zero-rated.
Pintard said the Free National Movement (FNM) supported expanding the VAT-free list to include other critical food supplies as he challenged the government to engage in good faith talks with both The Bahamas Pharmacy Association and the Retail Grocers Association to come up with a workable solution.
He outlined several measures the government could provide economic relief as he lashed the government over what he considered to be another failure to consult ahead of major policy shifts.
“We challenge the Government to help the pharmacies to reopen in the interest of ensuring that Bahamians get access to the medicine they need,” he said in a statement.
“This could be done by having a goodwill, honest and respectful meeting with the affected businesses to come up with a workable solution.”
He continued: “The Davis Administration and all stakeholders should continue to work together cooperatively to determine what concrete steps can be taken to reduce prices and assist the poor and vulnerable – but in a way that does not jeopardize the very Bahamian businesses that provide the goods, services and employment to the public.
Pintard called for the expansion of the social services voucher programme to provide direct support to qualifying families to assist with the purchase of medicines and critical food supplies.
He suggested the government reinstate the tax on real estate transactions over $2 million and end “illegal tax breaks” on the purchases of yachts and pleasure craft.
“Because the FNM believes in fiscal discipline and order, we propose the following to help offset revenue lost with the VAT reductions and the increased spending on social service support programmes,” he said.
“Cut in half the allocations for foreign travel, for consultancies and for special celebrations and events. This would provide tens of millions of dollars in budgetary allocation to support the expanded spending on social welfare programmes.
“We hasten to remind the public that this Government increased travel and consultancies in its first full budget, June 2022, while cutting substantially the allocation to social services.”
Pintard also called on the government to act swiftly to protect local businesses like the Bahamian Brewery and Beverage Co.
“It was a colossal mistake for the Government to amend the law so as to create a significant competitive disadvantage for this homegrown underdog, while at the same time enormously privileging the considerable market leader, a company that is majority owned by a worldwide conglomerate and which locally, already outsells the much smaller BBB by 4 to 1.”
He added: “We demand that the government fix this matter forthwith and instead put in place programmes that bring inflation relief in a manner that does not harm Bahamian businesses.”
