Barrow calls sales tax broken promise
As was expected the Leader of the Opposition, Dean Barrow was not pleased at the removal of the VAT nor was he impressed by the new sales tax which he says is more of a duty than a tax. He told News Five that today’s announcement is not the fulfillment of a campaign promise, but actually a betrayal of the voter’s confidence.
Dean Barrow, Leader of the Opposition, U.D.P.
“The Prime Minister promised before the elections that the VAT would be repealed and would not be replaced by any new tax. The confirmation now that a sales tax will be implemented is a betrayal of the pre-election promise.
Apart from that I have to complain because I was only given the bill during the course of the sitting this morning so that I have not had a chance to look closely at it. But what is obvious from a quick glance is that the number of items that are exempt is very, very small indeed. While it is said that it is a sales tax I see that the tax will be charged at the point of importation. I see also that there is a variable rate so that on things like fuel and tobacco and spirits there is a higher rate.
What is quite clear is that there is not going to be any decrease in the cost of living as a consequence of the sales tax and that for those who matter most — poor people who benefited from this large net of exemptions under the VAT, the cost of living will actually go up.”
Barrow also maintains that the three million dollar surplus now available for the budget was actually created by the implementation of the Business Tax under the U.D.P. administration. Barrow says the Business Tax forced many business people to pay taxes in a forthright manner and prevented them from evading taxes through creative bookkeeping practices.
