A guest speaker on the radio talk show Parliament Street, Mr. Miller said that Minister of State for Finance, James Smith was meeting with the IMF to develop a system whereby taxes would be related to individual incomes.
“Our stamp tax is really not a fair tax,” he said. “When the l’il fellow in Bain Town pays the same taxes in the country as the good gentlemen in Lyford Cay or the Eastern road, our whole tax system needs to change.”
The Minister’s disclosure came as he discussed benefits to The Bahamas of joining the World Trade Organization and the Free Trade Agreement of the Americas with the show’s hosts, Jessica Robertson and Fayne Thompson.
“It is not fair that the average Bahamian pays the same to run his country, even though he makes probably ten percent less than some of us, but he carries the same burden,” Mr. Miller, said, noting that the United States had one of the best taxation systems in the world.
In a local context, however, Ms Robertson suggested, some financially well-off Bahamians might say, “Well, I work hard. So, why should I have to pay more?”
Mr. Miller, noting that the Real Property Tax had rates such as could not be found anywhere else in the world, said, “I look forward to the day, very shortly and hopefully not in the too distant future, when we would come with more equitable tax so that Bahamians who can afford to pay more would pay more to enable our brothers and sisters who are less fortunate than we are to pay less.
“They should not carry the same burden as those of us that can afford more,” he said.
Asked by Ms Robertson if Bahamian import taxes would change if The Bahamas joined the WTO or the FTAA, Mr. Miller said that the Government could not afford to lose 15 to 20 percent of its revenue by “discriminating” against countries that paid import duties.
“There is no such thing as appreciating my income,” he said. “My duties would decline to such an extent that I cannot run my country. It would simply be rearranged under a different format…either an excise tax or a sales tax, which are the two more realistic ones.”
Asked by Ms Robertson whether the Government would “fight” for an import tax, Mr. Miller said, “We will fight for it.”
In fact, he continued, “there’s a 90 percent chance that we will be able to keep it,” so countries, who trade with The Bahamas will not be discriminated against.
The “FTAA is an evolving process, and each country is looking out for its own best interest,” he said.
He also noted that the United States put import taxes on several industries, to protect whatever its own best interest.
“Back in 1986,” he gave as an example, “President Reagan was president at the time Harley Davidson motorcycle was bankrupt, because of all the motorcycles that were being imported from Japan that were perceived to be better than Harley Davidson.
“Harley Davidson is an American institution. President Reagan put a 1,000 percent duty on the imports. Harley Davidson is now one of the top companies on the New York Stock Exchange,” Mr. Miller noted.
And The Bahamas, just like the United States, Mr. Miller asserted, has the same right to protect whatever is in the best interest of its people.
He said that until the time the average Bahamian was seen to be made aware of the various issues involved, the Government would not ratify any trading agreement.
By Khashan Poitier, The Nassau Guardian
