Weakness in Current Tax Collection System Threatens VAT
With more than $550 million in Real Property Taxes outstanding, Free National Movement Chairman Darron Cash urged the government to correct its tax collection system before imposing VAT on Bahamians.
Speaking to The Tribune yesterday, Mr Cash said the extent of uncollected back taxes raises major concerns about the weaknesses in the current tax administration and collection agencies.
He was speaking in response to an admission by State Finance Minister Michael Halkitis that the government was challenged with a flawed tax collection system that often duplicated bills and has a hard time keeping track of accounts in arrears. He said the government would need to invest in new equipment and manpower to maintain good collection levels.
“The extent of the uncollected back taxes raises major concerns about the weaknesses in the current tax administration and collection agencies. Dozens of questions have arisen about why this system has failed so badly. It should be clear to the Prime Minister that he has a duty to answer these questions for the country before he imposes another tax.,” Cash said.society, taxes, VAT