The Progressive Liberal Party came under heavy criticism this morning from FNM senator, Tanya McCartney who said that while government is seeking to provide greater accountability and make revenue collection by way of passenger and ticket tax more efficient, it must find ways to generate revenue instead of providing exemptions.
Sen. McCartney said the country desperately needs to be making money now and stressed that although efficient revenue collection is desirable, generating revenue is imperative as the bulk of the country’s revenue is earned through customs duties.
She was speaking in the Senate today on an act to amend the passenger tax act.
Sen. McCartney said although she supports the legislation, which will facilitate the collection of passenger and ticket tax for the payment of sums into the Consolidated Fund, the Bill has too many exemptions.
She further questioned whether government’s hiking of Junkanoo prices “beyond the reach of the poor man and keeping the average man from the heart of cultural festivities” was the only idea it had to generate income for the Public Treasury.
“If we want to improve revenue collections and get money into the Treasury, limit the exemptions while making provisions for certain persons to be entitled to a refund,” she said.
“In the present economic conditions, what we need to do is increase opportunities for funds to get into the Treasury rather than limit them.”
Ms McCartney also quoted the Minister of State for Finance, Senator James Smith, who in his address to the nation on May 19, 2002, noted that the main revenue shortfall is in customs duties and in similar taxes, which depend on the strength of the tourism sector.
In its latest quarterly review, the Central Bank of the Bahamas noted that the fiscal situation remained adversely affected by the sluggish economy and outlined that reduced revenue collection helped to contribute to the deficit during the first 11 months of the fiscal 2001/02.
Sen. McCartney said she is interested in knowing the following from the Minister of State: What does he consider to be a reasonable time within which corrective measures ought to be taken? What corrective measures does the government intend to implement and what is the time frame for such implementation? What are some of the measures that the new PLP has implemented thus far to increase government revenue; what steps are being taken to limit government debt and when will public consultation begin regarding restructuring of the Bahamian tax regime with a view to meeting future international obligations?
The Bill also seeks to further provide for the refund of passenger tax to a passenger whose ticket has been cancelled.
Sen. McCartney also expressed her disappointment at the direction and pace of the legislative agenda of this PLP government thus far.
Sen. McCartney said in the PLP’s plan, a promise was made to rescue the economy by expanding economic opportunities for Bahamians through diversification; the promotion of Family Island development and investment; by encouraging small business development and welcoming foreign investors, replacing red tape with a red carpet to stimulate investment.
“The PLP promised on page 3 of ‘The Plan’ that it would be seen every day, engaged in the building of a new Bahamas,” she said.
“It therefore pains me greatly that after five months we have had merely three relatively simple pieces of legislation, which embody nothing of the social agenda that the PLP promised sent to this honourable chamber.”
Sen. McCartney said after five months, two out of three Bills had to be amended after members of the Opposition in the House of Assembly pointed out deficiencies.
She said Bahamians deserve good governance, which involves responsiveness, entails the introduction of Bills in a timely and organized manner and requires the passage of legislation that will touch human lives in a substantial and meaningful way.
“To date there has been no such legislation, to date there has been no such good governance. To date there appears to be nothing but lethargy characterizing the governance of this great nation,” she said.
Sen. McCartney said the PLP promised to serve as a catalyst for economic growth and development and urged government to get on with the “substance of good governance” and begin codifying policies designed to touch lives in a positive and meaningful way.
The Bahama Journal
