Restructuring the tax regime of the Bahamas is no longer an option, but a must as the realities of globalisation kick in, according to government officials.
To this end, Prime Minister Perry Christie has launched the Office of the Bahamas Trade Commission (OBTC) to play a pivotal role in advising the government on trade liberalisation and globalisation issues geared at expanding the potential of the Bahamas to earn foreign exchange from the provision of internationally competitive goods and services.
The Commission is mandated to examine and review the Bahamian Taxation System with particular reference to the impact on the system of the World Trade Organization (WTO), the Free Trade Area of the Americas (FTAA) and the CARICOM Single Market and Economy (CMSE).
During the 2002/2003 Budget Communication, Mr Christie promised to ensure that the Bahamian public is consulted on developments in relation to the establishment of the FTAA and the application of the Bahamas for full membership into the WTO.
The Trade Commission, announced yesterday, is comprised of 22 members in areas strategically related to trade. Deputy Governor of the Central Bank of the Bahamas Wendy Craigg chairs the group and President of the Bahamas Chamber of Commerce Raymond Winder serves as deputy chairman.
A legal advisor/trade consultant will also be appointed to the Commission on a full time basis to review, analyse and provide legal advice on all trade and trade related issues and their implications for the Bahamas , officials said.
Mr Christie said in recognising the impact that trade liberalisation would have on the government’s revenue base, the Commission will be responsible for examining and reviewing various studies prepared on the impact of the FTAA and to a lesser extent the WTO on the tax structure of the Bahamas. It will also submit recommendations on alternative tax measures for the consideration of a Trade Ministerial Committee and make recommendations on further studies if required.
“Your task will also be to advise the government on the administrative and institutional framework for the development of an effective response to globalisation and the trade liberalization process, in particular the establishment and staffing of an appropriate technical support structure to facilitate the work of the Commission,” he said.
The Commission will also be expected to examine and review issues of concern for the Bahamas on four dimensions of trade, namely the WTO, FTAA, CARICOM Single Market Economy and the African Caribbean and Pacific and the European Union (ACP-EU) Partnership Agreement to identify strategies and programmes to address the fundamental issues of concerns in relation to multilateral, hemispheric, bilateral and regional trade initiatives.
The Commission is further mandated to advise the government on the formulation and development of realistic and pragmatic trade policies, which will positively impact the sustainable growth and development of the Bahamian economy, including strategies and programmes to develop policy positions on market access to developed countries, which could further integrate the Bahamas in the global community, thereby opportunities for Bahamians.
Said Mr Christie: “You will be expected to advise the government on strategies and programmes to develop policy positions, which will allow for the making “offers” to other nations thereby further opening the Bahamian economy to productive foreign investment.”
He also announced that the Commission will be required to formulate strategies and programmes to enhance awareness, disseminate information and sensitise the Bahamian public about the challenges and opportunities of trade liberalization.
The Bahamas Information Service (BIS) and the Broadcasting Corporation of the Bahamas will be mandated to prepare film documentaries to include a review of the Bahamian Taxation System with recommendations for improvements to and changes in the face of Trade Liberalization and Globalisation along with three separate documentaries to inform the public about the WTO, FTAA and CARICOM Single Market Economy (CSME).
The documentaries will be aired at intervals on ZNS television and on the Cable Bahamas Community Channel as an avenue of informing the public about trade liberalization and globalisation. They will also be presented at town meetings in locations where access to cable television is not readily accessible.
The Bahama Journal
