Dominica’s value added tax (VAT) should be sent on holiday, as far as hotelier and former minister of agriculture Athie Martin is concerned.
“The VAT should be revisited. I cannot offer a prescription right now – maybe it needs to be reduced, maybe it needs to be put on holiday for three years, to allow there to be an accumulation of surplus revenue in the hands of the people who are taking the investment risks,” Martin is advising ahead of the July 17 budget presentation of Prime Minister Roosevelt Skerrit.
According to the outspoken Martin, the current 15 per cent VAT has been harmful to Dominican business.
He is of the view that governing politicians and their technicians “just see VAT as a cash cow”.
“I think it has hurt tourism, it’s hurt agriculture, it’s hurt manufacturing, it’s hurt all the productive sectors,” Martin alleges.
He says the tax was intended to stimulate production but cannot lay claim to having achieved this.
He is recommendating a three year break from the VAT, after which he says it could be reinstated in stages.
“We’d start with a seven and a half per cent, or ten per cent or whatever it is. But by then we would have seen what the production profile of the country can be, and we would know what you can tolerate,” he says.
Martin is not holding his breath about his recommendation being taken up “because frankly I think that the government has run out of money”.
“Government has run out of cash with which to meet the day to day business of the administration of the country,” the hotelier said, pointing out that its dependence on the VAT today made it very unlikely that the measure would be reduced or relaxed for a while.
There is concern on the streets of the country that the VAT could be increased in the coming budget.
However there has been no official confirmation of this to date.
During his presentation of the 2010 Budget Prime Minister Roosevelt Skerrit had indicated that the government expected to receive revenue totaling EC$125 million from the VAT.
Athie, I can remember when you tried to influence one of my siblings, politically that is. You sang a different tune then. The trhing about you Athie is that you critizie everything and I have not heard you suggest a single WORKABLE solution as an alternative to anything. A man of your interllectual stature and experiencec I have great difficulties understanding why you are so deeply mired in this hopeless opposition “empty vessel makes the most noise” strategy. You continue to deliberately abuse your intellegence. For country sake Athie, take a secound look at yourself and “make a change”.
Before the VAT was introduced, Dominica was surviving. Why cann’t it be reduce now.
It is quite revealing to note that some people who are safely residing in some external country are requesting that the VAT remains or even be increased.
These are the very ones who took a plane come down to vote , install a government, then ran away from their creation. What reverse patriotism!!
by the way Mr VAT-man, adding VAT on postage is ILLEGAL in the rest of the world.
the people feeling the effects of VAT are the poor and those who do not have a means of claiming VAT through sales. those rich business owners feel nothing. they get to put the money collected from the VAT back into their daily operatiions and they have by the 20th of the next month to pay the difference between the VAT paid and VAT collected and pay that sum to IRD. Its people like me who have to pay beautiful VAT on everything i buy that are in deep . People like Athie do no feel that. Thats the truth i work for a rich man i may never earn as much as him and VAT benefits him not me. believe me 15% VAT is alot furthermore to have 17.5% shoved down our throats. Wisdom and knowledge are out there and we need to seek it. understanding how the world works will help us deal with alot of things better
Correction: 100% VAT
Nasty comments that are against the Government or supporters are fair but the same comments against UWP and their supporters are deleted,therefore I have to conclude that DNO is Anti-Government/DLP or the person moderating the comments is.
I mean tax us, but not 15%…… Dat too high… All u killing our little pocket..
Have import duties…But not 150% on vehicles….. Afterall man…….. Is not to say Dominica making vehicles..
But then again, Skerrit winning next election…
We can vote for Skerrit, but make him give us what we want… And its not galvanize and wood….
We need means to provide for ourselves… that is what each and every Dominica should want…
Open you all eyes…
We should go to our ministers and demand what we want….
“We want all you to lower the vat and if all u doe do it, all you not getting my vote”
Not
“Excuse me Sir, you can lower the Vat please?” <<< NOOO
What we don't know is that we the people have a lot of power in our hands if the masses comes up with a reform and take it to government, they must listen to us, bcuz they need our vote…
We dont need Skerrit or any of the other ministers…. It is they that need us.. Very much
The quintessential RABBLE rouser. Identify an issue that may be popular with the public. Make false, misleading or unsubstantiated statements about the issue and wait for the firestorm. Obviously no solution is proposed because the Rouser would have to defend something. The work of a coward and conniving derelict.
Athie get old eh
i kinda agree with him in terms of removing the vat, but i would say reduce the vat to at least 7% to see how things go, so that ppl can try and invest more or at least their investment can grow a bit and would further invest to bring more employment in the country….at lest not all his comments are bad
Like everything else, there is a time and place. The increase of the VAT at this juncture is untimely and will have devastating consequences for the economy.
An increase in the VAT may only result in a marginal increase in one trip to the grocery shop, supermarket or when paying utility bills. However the burden is felt on the household budget over the period of the budget cycle. It definitely adds up to a significant amount in time and really our people cannot afford it now.
The VAT is a direct tax which is imposed on everyone. Therefore it will affect, famers, house workers, tour operators, bus drivers and the poor in general more than it will impact of the lifestyle of the politicians, lawyers, ambassadors, accountants, economists, doctors and salaried government employees-albeit we are all in this economic mess together. It is the poor among us that is most affected by such a tax. The VAT does not work like income tax. In fact it works in reverse. In terms of income taxes, one does not pay any taxes or pays lower taxes based on the level of income earned, no one is spared under the VAT and this it what makes it both effective and dangerous, depending on when and in combination with what other measures it is introduced.
The basic fact is that an increase in the VAT will not only punch deeper holes in the leaking wallet of the poor but it will further stifle private sector growth and job creation. The economy stands to gain a lot more if we can put our young people to work through public works, on the farms, in gangs cleaning the rods, more tour guides in the Roseau Valley, etc, etc.
When people have less money in their pocket, they spend less, demand is reduced and the revenues of local business fall, which leads to increase unemployment, migration, lower population, social unrest and a cycle of inescapable poverty.
Now add to this brew of sadness,
-government intention to cut back on public spending;
-continued freeze or no salary increases for public servants;
-stagnant private-sector wages;
-reduction of social security benefits;
– Loss of health and personal insurance coverage;
– high commercial interest rates at the banks;
-increasing personal debts/mortgages against rapidly depreciating property values–all of which makes for economic chaos
If people (especially the red thinking bloggers) are truly interested in alternatives to the increase in the VAT here are a few- But don’t kill me for at least suggesting as no one voted for me to represent them in the Roseau Valley or in the parliament of Dominica. I do not have the status of being referred to as Parliamentary Representative or Minister this or that.
My suggestions are meant to stimulate positive action to balance my legitimate criticisms of the government. If the government is smart enough to listen to those who oppose it, it could inter alia;
– delay any planned increase in the VAT as now is not the right time for an increase- already it may be too high. VAT is meant to tax added value, therefore the best time would be when we have a more vibrant export sector;
-Create the environment to stimulate private investment to avoid a complete collapse of the economy;
– support the private sector with facilitating regulations and policies aimed at encouraging employment creation and where possible through fiscal measures with the support of the ECCB to encourage private sector borrowing through reduced commercial lending rates and the interest on housing mortgages;
– facilitate increase financing for micro and small business enterprises, by increasing the base funding of institutions like the NDFD and the Small Business Unit, which will expand, grow, and create more jobs for our people;
– introduce a carbon tax to promote a healthy and clean environment and increase the consumption tax on commodities such cigarettes, alcohol and cheap low calorie, high sugar content drinks;
– Increase taxes on inheritances, the purchase and transfer of land and property, which could be imposed without adversely affecting economic growth or affecting the poor- with provision for exemption below a certain value;
Whatever the negatives associated wit the implementation of the above in any combination, they would not by themselves or collectively be severe as the negative impact of an increase in the VAT on the backs of the poor and those businesses seeking to create employment in Dominica.
To those who would want to give the impression that the alternative to an increase in the VAT is a drastic cut in government spending – they may be wrong. This is the same line of thought that advocates a form of sustained economic development based on more Chinese, Venezuelan, Algerian grant and loan funding and the continued employment of foreign nationals to work on capital projects funded by these foreign governments.
The government can be assured that an increase in the VAT among other belt tightening measures will invoke a nasty and painful reaction from Dominicans unless the intention is to increase the VAT during 2012-2013 and then reduce it just before elections in 2014-2015 as a political gimmick.
The basic point that I am making here (as a non-qualified economist) is that we have alternatives to austerity as Europe is now finding out but we must be prepared to put our heads together and think this through. Mr. Martin has initiated the debate, let’s contribute without attacking him. At least he is brave enough to put himself forward and to make a suggestion. We only need the PM and his cabinet to don their collective thinking cap and do what is right by first reducing the size of the oversized and inefficient cabinet, put our small indigenous population back to work by making jobs for Dominicans the No.1 priority of the upcoming budget and things will take care of themselves.
Now, I await the 2012-2013 budget presentation and debate to the extent that the Speaker will allow such free and open debate).
We need that open debate without the mess of this Speaker so that we the people can make informed conclusions
I am all for reviewing and even evaluating policies, especially macro ones as the VAT.
However, reading Mr. Martin’s article, it seems to me that he is confused about what he want to say on the VAT. He does not support it, it seems, at 15%….He wants it sent on vacation……he wants it revised but, understandably he does not have prescriptions as yet….Yet, he believes it should be re-introduced incrementally staring at 7.5%. So, we should keep the VAT then? Or…?
Space does not permit me to expose fully the folly in Mr. Martin’s convoluted statements, but just for entertainment sake…
1.A value added tax, as many countries have noted, is indeed a cash cow…a revenue generator. When we send the VAT on vacation, where will we get the millions to meet our immediate expenses? Note, I said immediate. Any suggestion of “investing” in factories etc is a medium to long-term solution. It is irresponsible of Mr. Martin, at the very least, to recommend the scrapping of a policy without suggesting how we treat the consequences of that “vacation.”
2.He suggests a 7.5%. Well, where did that figure come from? Was there a study? Where can we access the report on that study? I know that the government (Cabinet and the technocrats) did not simply jump onto 15% VAT.
3.If the VAT is so bad for business, why should we even re-introduce it? Do you realize that Mr, Martin, himself, does not recommend an alternative to the VAT? To him, the VAT is bad, it gives us “mal vant” (he did not say so), but let us keep it. Well, why would Mr. Martin suggest that we keep the VAT? You, dear reader, should ask this question. In fact, what he says is, among other things, “I accept that we need the VAT but 15% is too high.»
4.Mr. Martin claims that the government cannot point to how the VAT has helped stimulate production. He probably is correct (although I am sure the government can point to redistribution programmes where VAT money has been reinvested). Yet, Mr. Martin is equally hard-pressed to prove that VAT has stifled production. So, while he makes wild claims that he cannot substantiate, he calls on the targets of his rickety logic to provide hard data.
So, what we have here is a watery and fiery hot soup by Mr. Martin that even he seems to be having difficulty dishing out.
I reiterate, we should always evaluate our policies. The VAT, is no exception. In fact, I submit that considering its significance to our development, the VAT must be evaluated, not “reviewed”, but subjected to a systematic analysis. Then, let us move forward. In the interim, we should continue to explore creative ways to boost export.
I like your opening and closing statements. I understand- you had to introduce a twist to the rather simple statement in a deliberate attempt to complicate it in the minds of your readers. In essence, you and Martin are saying the same thing. – “review/ reevaluate the effectiveness of the policy”. Mr. Martin statement is no more “convoluted” than yours.
It is unfair to criticize Mr. Martin for being irresponsible in recommending a review of the policy, which may result in its elimination. You yourself have concurred that it should be reviewed/re-evaluated. Why if a professional and honest review/re-evaluation concludes that it is a bad policy as implemented and should be eliminated? Moreover, having suggested that the policy should be reviewed, it is for the government with the 18-3 mandate and its technical team to do what is necessary and to advise of their findings and recommendations in dealing with the consequences of their policy. Why are you placing the onus on Mr. Martin? If you profess to know that the government (Cabinet and the technocrats) did not simply jump onto 15% VAT, then why not afford them the privilege of advising of the consequences of reducing the VAT or eliminating it completely?
You suggested –Peeping, that Mr. Martin claims that the government cannot point to how the VAT has helped stimulate production may be correct but yet you assume (with absolute certainty) that the government can point to redistribution programmes where VAT money has been reinvested. Could you kindly advice of these successful redistribution programmes of the government?
Again, you have demonstrated that you are a very intelligent and reasonable person in your conclusion. You support the idea of reviewing/re-evaluating the VAT, subject to a systematic analysis, recognizing that we need to move forward and to begin to explore creative ways to boost exports.
As you know, I have great respect for your positions on these matters, even if I do not agree with all, but I think you just could not resist hitting Athie below the belt in your closing remark to characterize his statement “as a watery and fiery hot soup..that even he seems to be having difficulty dishing out” Based on the reaction of the public to Mr. Martin’s comments, people seem to get it. They enjoyed the Martin’s soup as hot as it was served. Even you seem to have enjoyed it-but you couldn’t resist adding extra salt and pepper and destroying its taste.
Yes, I agree for an evaluation of the VAT not because of a knee-jerk/orgasmic desire but because policy evaluations, I believe, are an integral part of policy implementation and refinement. If we want to know how our policies are working, we must review them, but more importantly actually evaluate them. In the absence of such analytical work, any discussion about scrapping VAT, when it has been shown to enrich our coffers, is irresponsible unless….
ROSEAU VALLEY: “It is unfair to criticize Mr. Martin for being irresponsible in recommending a review of the policy, which may result in its elimination. You yourself have concurred that it should be reviewed/re-evaluated.”
Oh, I think you missed the rest of my statement on that matter. I said : “It is irresponsible of Mr. Martin, at the very least, to recommend the scrapping of a policy WITHOUT suggesting how we treat the consequences of that “vacation.”
ROSEAU VALLEY: “If you profess to know that the government (Cabinet and the technocrats) did not simply jump onto 15% VAT, then why not afford them the privilege of advising of the consequences of reducing the VAT or eliminating it completely?” When the VAT was first introduced, we were told of why and of the consequences of not introducing the VAT. This is public knowledge. Unfortunately, governments do not always face the public with a string of options. The technocrats do the calculations and the politicians decide what they think is best. So, during that debate, back then, arguments in favour of alternatives to the VAT were either weak, simply drowned out, or simply ignored because of various reasons.
ROSEAU VALLEY: “You suggested –Peeping, that Mr. Martin claims that the government cannot point to how the VAT has helped stimulate production may be correct but yet you assume (with absolute certainty) that the government can point to redistribution programmes where VAT money has been reinvested. Could you kindly advice of these successful redistribution programmes of the government?” What you as for is evidence of a government programme that has specifically been financed by proceeds from the VAT. I do not work in the public service and so, i would not attempt to offer precise information. Why not inquire at the Financial and Planning ministry; this ministry, like many others, is a good source of information? You would know though, that The VAT is a general tax, not limited to any one sector as is the environmental levy.
Mr Martin just a talker as always. He said he is full of ideas,but cannot implement nothing when put to the test. He is one that was selected on a committee for the vat. I’m very much surprise to here him now . What a man ? Dominicans must remember as min of agriculture ,he put the enviromental levy.
I think that VAT needs to be lowered to 3% and that no food is taxed……only the chinese non-food. Putting on holiday in total for a year is also not a bad idea. The import/customs duties are killing business in DA and why should the general population be penalized by these ridiculously high tariffs just for bringing in many things that are not commonplace here. There should be no duty on imported stuff that is not in direct competition with products produced here.
We don’t need higher VAT we need better collection of taxes.. VAT at 15% is already too high.. People start Black Market behavior at about 10% VAT.. You raise it to 20% everybody will take cash under the table.. Drop the VAT to 10%, then encorage people to pay more accurately and timely.
For example, When someone imports something to sell retail don’t charge them VAT or import duties, instead give them an item/batch number and a VAT value attached to it. When they sell the items they pay that vat. The quicker you pay the less the vat.. Call it VAT discount. Also no import duties or VAT on production equipment or materials for business. Just like pickup trucks for bananas, it make no sense to charge someone import duties and VAT to bring in equipment they are going to use in a business that will generate VAT for a lifetime. Doing that is just making it more expensive to start or improve businesses.
Lastly this is 2012, Govt should work with the banks to set up a special type of checking account called a VAT account. All businesses/business people should have a VAT account at the Bank that is just for VAT and VAT management Deposit directly into that account and pay your VAT bills electronicly and directly from it.
If you continue to raise VAT you will choke growth and stiffle your economy, or worse force people into the black market and increase crime..
Boy oh boy, I listen to some of you people and I wonder. We all know the VAT is the only income generation for government, therefore the government must use that VAT to create a better life in the key areas of job creation. Since the VAT we have not seen that, instead things are getting worse. People have less money to spend and the availability of jobs is just not there. The government will soon collect less VAT. WHAT WILL THEY DO NEXT? Come on we must be more creative than that. You cannot tax your way out of a rescission, IT JUST WILL NOT WORK!!!!
lower taxes and boost enterpise. Dominica can be so much but its people haven’t seen the light yet.
I agree VAT holiday should apply for all local productive goods and services (excluding retailing)
@ Met Yo..LAZY you LAZY, you don’t want to work and empower yourself so you can make a meaningful contribution to Dominica.
You want Red Clinic… stupees
hahahahahaha
Darling first of all, I leave Skerrit estate for him 3 years now…
Secondly, I work 7 days a week.
Can you believe Arthie one of the GENIUSES for the opposition? “The VAT should be revisited. I cannot offer a prescription right now – maybe it needs to be reduced, maybe it needs to be put on holiday for three years.”
Dominican just like to complain, pay the damn tax, it will benefit the people in the long run.
u are so dum can run a on country on taxes u need to invest in performance indicator like agriculture manufacturing
Athie can’t be more correct than this. These technical officers are having politicians dictate to them when they should be the one advising these people. Tomorrow it is our Dominica that we will all have to continue leaving in. I have seen VAT basically destroy a number of businesses, this cannot be good for the economy, in no way shape or form, because what we will have as one person rightly said, the continued shut down of businesses and the continued expansion of Red Clinic. Is that what we want. Some of these technical officers believe that it is such an efficient thing to do to make persons pay VAT even if they’re not entitled to do so, it is absurd.
Mr. Skerrit please do not listen to Arthie. We know the country’s finances are in the mess, so this is what I am suggesting:
1) Increase VAT to 20%. People will complain and run their mouth but they will still vote you back in. So don’t worry about it.
2) Impose that 4% levy on everybody salary you mentioned a few months ago to put towards sending persons overseas for medical treatment. We all know PMH not in it, so do your thing brother Skerrit.
3) Rent Arawak House of Culture to host the red clinic. There have plenty seats and people will come on the stage and beg you while the other look and wait their turn.
Sir I guarantee you, if you do this, you getting all 21 seats next election.
Mark my words.
Very Foolish Comment!!!!
It’s Sarcasm…
I like this- But I think many people may miss the clever twist of your contribution. You may get thumbs down from those who do not get the brilliance and rich sarcasm in your statement.
understanding is power to reading.
touche
OMG I Love it! We really need a “Colbert Report – Dominica Edition”! So much good material here!
Met Yo – Can I add 3a) Take mug shots of each person holding a sign board with their request? Just for future reference if they ever think to question who they’ll be voting for at the next election!
hahahaha…that is it..u know it…take mug shots of them….some of them posting on here…they will see their pic
koshonie
why don’t Dominicans get sarcasm??? they not following the happenings close enough so they don’t understand who is who and who stands for what…. LOL great sarcasm MET AH LUV IT.
Your comment is a joke…..right???
listen well kid. when u gey your salery at the end of the month for the first time, start paying BILLS for the FIRST time…we will see what you have to say, with all your smart talk..
@mete…..my boy you have either have serious issues with thinking logically or you’re one of the most sarcastic person in a subtle way on this blog
ya man good one the people just love the PM….
Great humorous satire, keep in mind however that understanding satire requires a high level of intelligence without which it this satirical piece maybe viewed as a viable course of action. Met Yo it would be wise to be careful with your humor. The joke may be on the country.
For those that advocate NO VAT. Here is some FOOD FOR THOUGHT
How will the Hospitals, roads police stations and so on be maintained let alone build new ones.
Should the burden of tax be on shoulders of the public servants (Income Tax)
VAT tells us what value has been added to to produce the “Finished Product”. In other words, How productive we have been and in what sector/segment.
How taxes are used by the government should be the subject for discussion. not getting rid of VAT all together.
How could this be 4progress, when you expect our hospitals, roads, police stations (all public infrastructure/capital expenditures to maintained solely on the collection of VAT – (note the issue is not about collection of taxes in general. It is limited to the VAT.) No one is arguing that the burden of tax should be on shoulders of the public servants through income tax. What about creating an environment that is more conducive to encouraging more productive public-private and local-foreign investment, job creating enterprises, development of the productive sectors including agriculture, manufacturing, agro-processing etc from which more income can be created and from which government could generate more revenues.
You are right that VAT tells us what value has been added to produce the “Finished Product”, but what are we producing to generate the VAT? Let me ask you-How productive have we been and in what sector/segment specifically to warrant an increase in the VAT?
We should not only be concerned about how our taxes are used by the government but how the government is killing the chicken that lays the golden egg. Therefore, to the extent that the VAT is contributing to that unfortunate situation, we must look at it again. This is all I understand Mr. Martin to be saying here.
get a clue friend….
As a proponent of a “NO VAT” concept. Here are the thoughts you should contemplate,,,
What was the government doing before the concept of VAT???
Not sure how old you are but do you know the concept of SUB??? I am not that old and not sure how to spell it but it worked like this: Those women whom carried the boxes of bananas to the Lighters would have this system of savings and Loan where a group of five used to come together and they all would bring their earning together and each one would have a benefit of the loot in a five week interval until the last one was able to utilize the loot,,,
Five individuals would come together and contribute 100 bucks together would generate 500 bucks every week and each one would have a turn at utilizing the generated Security [loot] and thats how we should do, all made equally whole none would be unjustly enriched,,,
Should the burden of tax be on shoulders of the public servants (Income Tax)
No!!! because public servants grants their intrinsic valuable considerations [Energy] for benefit of Public Good in exchange for Extrinsic valuable things considered as Money which does not constitute as a fair exchange, as Money is manipulated by the input of the [Monetary system] institutions controlled by the “Fellows” who manipulate the value of Currency, for unjust enrichment,,,
ALL Should be public servants with the same conceptual goal to achieve the basic necessities for survival and not for unjust enrichments and wants,,, we only need the basics Shelter, nourishment, and clothing [warmth],,, Challenge is extended to those whom have different belief(s), every-thing else Man seem to desire are merely “Wants”,,,
VAT tells us what value has been added to to produce the “Finished Product”. In other words, How productive we have been and in what sector/segment.
WAW where did you get that concept from, did you create the concept of VAT???
How taxes are used by the government should be the subject for discussion. not getting rid of VAT all together.
Ok so where would you begin??? I would like to ask Skerrit for the the Accounting seeing that he is Chief [Executive] Financial Officer, can we start there???
we need investment jobs jobs will solve all our probs more jobs means more taxes for govt
Athie you on point cause that VAT they have in the whole Caribbean is not the same VAT as what Maurice Lauré, Joint Director of the French Tax Authority, the Direction générale des impôts implemented, when it was first introduced on April 10, 1954,,, It suppose to be [as it was suppose to be] in theory to avoid the cascade effect of sales tax by taxing only the value added at each stage of production.
How can there be a VAT on a Fridge that someone gives you in St. Marteen and you want to bring it for your mother who needs one so dearly,,, where is the value added to that fridge???
And all the VAT that is being collected who can give an accounting for its collection(s), and where is the evidence that the revenue collected is going back into the infrastructure???
The VAT we see in Dominica and other CARICOM countries is a total different Taxation,,, It’s Taxation assigned by particular establishments on all aspects of the exchange of Goods and Services on a whole and not on the “profit” margin,,,
In Rastars Opine any form of Taxation is a scam as it appears to be a differed duty forced upon those Individuals participating in Commercial activities in the region(s) where they dwell,,,
TAXATION should be charged to Businesses for the opportunity of doing business regions where they choose to operate, and should not be differed onto the customers whom have no other choice(s) but to deal with those monopolies whom rip the profits and transfer the benefits to the CFOs and CEOs for unjust enrichment,,, From heads of government to Heads of Companies they are the same bread of Fellows whose main objective is Greed and Profits,,,
Not only VAT should be Suspended it should be totally abolished so should Customs Duty on Imports, especially those imports that cannot be produced on the Island,,,
Athie is right about the regressive and anti growth nature of the VAT. THis consuption tax suppresses overall consumption which contributes to what economists call “aggregate demand” which feeds back into production and household income.
A consuption tax of 15 per cent?
This is high by any measure.
Most states in the USA have a sales tax that range from 6 to 9 per cent. I doubt their economies could withstand a 15 per cent tax.
But I understand the importance of the VAT in Dominica especially as government has come to rely upon that source of revenue to balance its buget and so reducing or eliminating the VAT could leave a hole in the budget.
Want to know my suggestion for filling the gap?
Legalize marijuana and regulate and tax it rather spend precious resources to prosecute otherwise law abiding citizens who only want to recreate with a mild relaxing agent.
its a damn shame the government can’t find another avenue to generate revenue other that to TAX it’s citizens….. I would be all for a new government department committed to innovating new ideas for revenue generation…hopefully if we can really provide surplus energy to neighboring islands that would be a nice start for an alternative to generate revenue, not withstanding their assistance in funding and developing our alternative renewable energy source.
The Greatest of all economy when it wants to balance its budget raises taxes to generate revenue.
A small country with negative population growth will pretty much do the same
I am not comparing America to Dominca, but we got to be logical and practical.
VAT is too high, but we gotta pay taxes
1979 do you realize that Peeping Tom and PROF WIKILEAKS went into hiding since the ALBA /USAID issue. It seems like both characters were out of spin oil. Even Tony ran out of Spin gas so much so he was telling the Caribbean news that he heard the denial from the ALBA Ambassador when he first told us that he heard the denial from the PM. You see 1979 you can put spin oil or spin gas into an old engine but an old engine with bad rings, warped block will smoke, leak spin oil and break down and through it all the passengers will be left stranded while those running the broken down vehicle and collecting passenger fares will take the money and run.
So far this Labor party VAT thing only has those meaning to me – Vagabonds And Thieves (VAT), Voler Apir tetechien (thieves and snakes).
I quite agree that taxes are a must, after all we must all make our contributions, but what i’m saying there is much more that could be developed as relates to the generation of state revenue… this is why I am always critical of this as well as other administrations. since we cannot depend solely on grants and funding and taxes…. we have to be innovative in addition to this, this is how china and other nations have become great, it is by realizing the potential of its human resource and knowing that whatever its people can learn to do for themselves, would be a welcomed relief on the dependency on AID, GRANTS and state loans….
this is what we have to talk about when we talk of development….. I mean its sad in this day and age that our public works department cannot construct a bridge and we have to wait for someone else to do it for us at even higher a cost. when will we be able to build our own bridges and keep our money in our country?
i see Davidson is quick to come to the defense of this regime, yet in his argument he is making mention of the negative population growth. Doesn’t it occur to you that part of the issue may be that taxes are too high that young persons see no use in staying here and being forced to beg to feed himself or pay his bills?? the current state of the island finances should tell us that the government policy of taxing an economy that is in recession is not the best way to get it out of reccession. anyone remembers the levy that was put on all salaries, can anyone tell me how many jobs were created? and for those who are quick to talk about other governments, please remember that this regime has been ruling for the last 12 years, i think its lame for the leader and his cronies to still be blaming someone else for the current state of affairs.The cubans have a saying, that behind every extremist you can find an opportunist!! i wonder what opportunities you are working for Davidson williams,
LOLOLOLOLLLLLLLLLLLLLLLLLLLL wow I love the way you ended that one…… (Wiping a tear of laughter)
great one afan!
woyyyyy OOO
Referee – You suggestion is on point! This government fails to be daring and visionary! If we could get the country to be MORE PRODUCTIVE then even with a lowered tax rate we could generate greater tax revenue.
We constantly hear of these Marijuana “drug” busts. Rather than tax it for revenue, attract more tourists by allowing them to enjoy ALL our Nature offers, and MOST IMPORTANTLY produce many spin-off products, we prefer to WASTE Tax dollars by employing more police officers to conduct investigations, arrests and then MORE Tax dollars for prosecution and incarceration. And who are we locking up and keeping from adding to our nations productivity? Our otherwise unemployed, strong, and smart young men and women!
Whats the point of having a government if we can only repeat the failings from the past: Beg, Borrow and TAX!
this deserves a MILLION THUMBS UP!!! you are REALLY AKUA!!!! brilliant!
Akua the bishop and them pastors will not be happy with the weed part.
The govt. makes plenty of money from these drug busts on the small citizens with marijuana. And the real crooks stay in operation. Both the govt. and the crooks make out like bandits.
Mr.pm increase the VAT on them, squeeze dem some more, then increase the red clinic the more we have in the red clinic the less opposition we will have in Dominica for a more peaceful nation.
LOL I like that piece of sarcasm…. NICE
I like the sarcasm in this one….LOLOLOL
LOLOL I love the sarcasm in this one…. NICE LOLOL
Athie, You are true Son of the soil, you have always taken a stand for Dominica.
Athie has always taken a stand for himself, that is why no one listens to him. He is the true picture of the word opposition and a community agitator.
Arthie I agree with you on everything except the suggestion to remove or reduce the VAT. Arthie the sad reality is that the Mal VAT is the only economic scheme that is carrying the Dominican economy. The removal of the Mal VAT to the Dominican economy is synonymous to imposing a economic recession on a Ponzi Schemer. Essentially the belly of the beast already exposed will start to smell. The question is Arthie after 13 years if not Mal VAT what else do we have. Agriculture mort long time, tourism awaiting internment at the funeral home, manufacturing cremated. Somebody Peeping Tom, PROF WIKILEAKS, Ronald Charles- all those quick to defend this corrupt and inept regime prove me wrong. Show us the economic development, the economic programs except begging that is working for Dominica.
People like Tony, father deception, Parry must point out to us the poor and struggling Dominicans the economic improvements in our lives ; not the improvement in theirs. I will be on the street this time- all of the sugar coating and lies on stale and disgusting buns.
gonernment needs to ease the VAT on necessities such as food. it is rediculous the price of food and other necessities in d/a
athie, you said with vat gov can not meet the daily expenses, so tell me with no vat how will they meet the monthly?
well father, you are paying for countless of ministers and their advisors, they should be smart enough to come of with other means other than grinding the bones of dominicans. isn’t that why you vote for bloke every 5 years to solve these difficult problems, to ensure that you dont reach to the point that you are so poor that you have to choose between keeping your morals or feeding yourself? but things clearly isn’t working in the nature ISLE, only island to see a drop of population in the last 20 years, soon from now we will stop having people of dominican decent since all the children of Dominicans will be born overseas.
They can start selling fig again
Aren’t the Merchants able to claim back the Vat that they pay? and this offet against what they collect from their sales.
Why not talk about this instead? There are those who cannot claim. but the Merchants can claim so they do not spend on Vat at all. The customers pay vat on the items sold or services so infact they are a holding company for the Inland Revenue. They collect from the customers and they deduct what they spend from their purchase so they themselves don’t pay nothing but it is they that speaking the loudest. What they pay to Inland Revenue is what they collect from other people.
Come on stop fooling the people.
so true great advise
do you think that Athie’s recommendation, even if brilliant can be taken onboard at this late stage with two weeks to go?
I get the impression that he heard the news of the budget date on radio this morning and BAM! issued a statement or DNO heard the news and went looking for responses to what do you expect in the budget.
Selah!
I have heard the cries of the people and I think VAT should be reduced. I am not sure about gonn. There will always be taxes to run the affairs of any country.
But reduce it significantly….PLEASE PLEASE
Those who are supposedly bright are the ones who fail to educate those who are less fortunate than us.
Some of us uses this to get the attention of the masses so we canthen go into Public Office.
Let the people know the truth that no country can survive without imposing taxes whichis being used for the greater good of the people of the Nation.
To provide for all the Public Services.
Yes remove the Vat but will we those who can afford donate to the Government. Look at Italy is crisis after crisis. Do you think that countries can just donate and donate and donate. We have to be productive for our self.
Yes remove the vat but how do we raise the income. That is what I don’t understand with person who like to see things onesided. Yes I would do without the vat but there must be taxes since Governments are not income generating entities but rather public service entities. Countries worldwide are going throuth the economice downturn like ourselves. Would they be willing to donate everytime.
Time for us to understand that we need to develop our destiny. Work hard and not waste our resources and give honest day’s work for pay.
Again the question for most of you are. What are your recommendations for raising the moneys to be used for our public services – Road maintenance, health, Education. Those Public Sectors are not income generating sectors but rather spending sectors which is what Governments do – to subsidise the Public Sector.
Oh smart one, thank you for confirming that your government is not fit for purpose. That they do not care about encouraging and supporting enterprises, that produce goods and services, create jobs you know, grow the economy, no, why should they when they can just tax the life out of us.
YES WE KNOW GOVERNMENTS HAVE TO COLLECT TAXES, THIS ISSUE IS ABOUT A PARTICULAR TAX, AS YOU WELL KNOW.
If you Mr Martin is unable to offer a tangible practical solution then is it fair to say that the criticism is not constructive?
Mr Martin, why don’t people like you, Bernard Wiltshire, Eddison James, Hecton John and others go back to the drawing board and agree on a tangible plan in light of the geo-politics and economic crisis worldwide in order to further position Dominica?
If the people of Dominica can see a viable alternative I am sure you guys can rally support for next elections. Why come on Q95 with a barrage of empty talk of corruption, this and that bobol?
In closing, when people who hold a different political view from the current administration do not have any viable plan for moving this country forward then it seems clear to my mind that they are envious and are only concerned for their self interest and not for the development of Dominica.
Because- people like Mr. Martin, Mr. Wiltshire, Mr. James, Mr. John and others are not in government with a 18-3 mandate to govern. These gentlemen are simply raising issues and encouraging public debate. They make proposals but it is the responsibility of your lazy and inefficient government to go back to the drawing board to find more tangible plans and realistic solutions to bring about real economic growth in Dominica in light of the geo-politics, economic crisis worldwide, while reducing the size of the inept cabinet, reducing the wastage of public funds through programmes like the red clinic and bring a halt to the tarnishing of the good name of Dominica in the international community etc.
You said- “If the people of Dominica can see a viable alternative I am sure you guys can rally support for next elections” Now –what are you talking about? Mr. Martin is not speaking politics. He is not talking about alternative to government. You are mixing your partisan politics with a critical matter of national economic importance. Please stay on topic.
By the way, I think Mr. Martin did suggest that the VAT could be reduced or removed in its entirety, which are two great alternative suggestions that the government could explore as it alone has the mandate and power to effect the change in legislation. It is disingenuous of you to suggest that Mr. Martin is “envious” of what? Who? and is “only concerned for his self interest and not the development of Dominica.” I do not know where you came from but it has been many years now that I have been listening to Athie commenting in that manner on Dominica’s development whether he is in or out of government. This man has been consistently on target. I do not think that Mr. Martin is envious of anyone in the Labour Party nor is he promoting any self-interest in suggesting that we should carefully reconsider the VAT.
Mr. Athie Martin must understand that a Budget has two (2) sides. Revenue and Expenditure. Generally both sides must be in equilibrium. That is the sides must balance. In that regard what ever is done on the Revenue Side the same thing must be done on the Expenditure side.
The Value Added Tax has brought in an average of $140M on the revenue side. If the recommendation of Mr Martin is to be accepted he must say what amount of expenditure in the amount of EC$140M that must be cut.
He must indicate whether salaries, expenditure on education, Health, Road Maintenance, Agriculture, Tourism etc etc must be cut in the amount of EC$140M
DNO if I am allowed, I would call Mr. Martin as being silly at the least in his recommendations.
As a government account, you should guard against using such absolute language that real accountants and economists avoid. They speak in relative terms.
You said, “Mr. Athie Martin must understand” – well to be honest with you Athie does understand and knows what he is talking about- unlike you.
You said- “a Budget has two (2) sides, revenue and expenditure and “generally” both sides “must” be in equilibrium. That is the sides must balance: You are all wrong. This is absolute language that is only used in theory not in the real world. Perhaps you intended to say, in theory, both side should balance- not must- as this hardly happens and even when it does it is not always sustained. Furthermore, what wouldn’t it be better if we could have a state of disequilibrium where our revenues surpass our expenditure and we have surpluses? Why do we have to be in this state of equilibrium?
You said, “what ever is done on the revenue side the same thing must be done on the expenditure side”, again this is an absolute accounting principles, which does not apply to this case. That is not the way government works. In fact, not even households or individuals operate in such a manner. This is purely theoretical, unreal and impractical especially in a small developing economy like ours. This is a scenario for the ideal lunar society in which I suspect you live. Not many countries on this planet operate in such a planned balanced, equilibrium that you may have read about.
Your equation is too simplistic to suggest that if the VAT brought in an average of $140M on the revenue side, one must propose an equal reduction on the expenditure. It does not work in that way. The aim should be to broaden/augment our economic productive base. Not to kill it with more and more taxes. Just to give you one basic example, if we had employed more Dominicans on the major road projects in Dominica then every $100 of expenditure would multiplier in the economy to generate $1000.00 in revenue. We continually missed that opportunity under the Labour Party.
Where did you get your Accounting degree? I suspect that you may have to return to Economics 101 and Account I classes. I do not think that one needs the permission of DNO to assess your comments as are rather silly, uninformed, unintelligent and baseless.
Lol. I am wondering where the person got his or her degree in accounting. Can’t stop laughing
In reply to you Roseau Valley I suspect that you are very bright and maybe one of those who were in charge between 1995 to 2000 where the country spent itself to the IMF. You remember those days?
My simple match box knowledge tells me that Government can raise funds in three possible ways.
Taxation, Loans, and Grants. If you reduce a tax then you must increase another revenue measure to equate the alternative foregone. In this case I guess we should increase short term borrowings from the local banks and choke out the private sector. That would be your alternative.
Alternatively if the VAT is eliminated as being suggested here then the resultant economic activity must be such that the Government will collect the same in another form of taxation or govt would have to significantly reduce expenditure which will further depress the economy.
Apart from your villification you have not offered any plausibe alternative to the VAT.
What you and Athie dont understand is that Government Spending is a Major economic contributor. Therefore Government must have the necessary revenue to sudtain a certain level of Spending otherwise the economy will collapse. Or the debt will increase to unmanageable levels just as what happened between 1995 to 2000.
It is crear to me you do not understand anything about government Financing or Economics. Please save the vilification.
Oh my , give that person a cigar, a government accountant no less.
“He must indicate whether salaries, expenditure on education, Health, Road Maintenance, Agriculture, Tourism etc etc must be cut in the amount of EC$140M”.
Well, I would contend that given that all the above stated expenditures are financed by the Chinese, Venezuelans, Cubans and even Moroccans, then we have equilibrium, wouldn’t say?.
As a so-called Government Accountant, you should be well aware that the government is suffering a backlash from the VAT, most businesses are returning the VAT entry forms with a deficit, no cheques, only DOMLEC that is making a real contribution to the VAT monthly.
There is Input and Output VAT, when a merchant purchases products he pays VAT and when he sells he recovers the VAT from the sales and gives government the surplus. But because sales are down everywhere, there is no surplus therefore most VAT entries are returned negative with government owing the merchants.
The Financial secretary’s staff are beating their head to find a source of revenue for the budget, therefore they are looking at increasing the VAT, but the Cow has no more milk and they already add so much water to the milk that they have any more is like chalk water.
No revenue from agriculture, no revenue from Chavez, no revenue from tourism, no revenue from manufacturing, no revenue !!!!! but they have ADVISORS like mad, Nantan, Vincent Ettiene, Mike Jones, Lambert, John Toussaint, Severin from the Red Clinic, Where is Parry Bellot? and ministers like Titiwi.
Country in CRISIS, waiting to explode.
remove VAT mr prime minister and increase our salaries
with what money? Tell us where we will get the money that will not only replace what the VAT is bringing in but will surpass it so you can get an increase?
See how ppl like Athie and them does make all you foolish!!!
You can get off your lazy –s and start producing, that’s where it will come from, but why should you, when uncle china picks up the bills
Ok fine Remove the Vat. Ok . Increase your salaries. Ok I guess you are a Public Servant? Then what is your suggestion to raise money? You did not give that suggestion. Do you spend at home without having Income coming in? Do you realise that the Public Service is non income generating entity but those have to be paid to do the work of the state. How do you intend to fund those payments to the Public sector?
Let us be realistic and not just repeat what we hear. WE must generate Income and most Governments world wide do so through taxation. Read the World news and you will understand. Persons do not like taxes but they have to be. Yes we have to spend less like productivity, wages and the likes of it. Are Civil Servants willing to be diligent to protect their interest like not spending too much or uselessly or even being the most productive in the offices as can be? Time is money. If you take 2 days to do a job that could be done in 1 day – that is wastage of 1 day. make the maths and then you will understand the wastage figure.
Take a leaf from the Chinese, they work to finish a job not linger and cost the project higher by lingering as it is with our culture.
Again those who talk the most, offers no alternatives.
It is a people who do not understand to spend less. Onthe one hand everyone who sells want to sell in big chunks ie no small chunks for those who have to look at the dollar. Everything gone sky high. If you sell in smaller chunks then your sales will increase. Five persons will buy five items at a dollar but those who wants to sell in chunks of $5 or more hoping to get more quickly will be left with their items on the self. They will bemoan that things are rough .. no sales.
Just giving my two pence. Try selling so everyone will buy a little and you will see. Who wants $10.00 worth will take 10 parcels.
Nina! bet you don’t know the US Virgin Islands story about job cuts, Hovensa Layoffs and the state of the USVI economy.
Do you know that the USVI government has let off a number of nurses, teachers and several other category of workers in the public service for want of cash flow?
Do you know that the USVI government is unable to pay Incometax refunds to taxpayers for the 2010 and 2011 tax years for wants of funds? Do you wish we in Dominica walk that road?
Imagine you having a cistern where you take water each day and there is no rain fall to replace the water you use, can you imagine your position after a period of time?
Be careful of what you wish for.
If things are so bad in the USVI come back to Dominica nuh. You this Viellecvase idiot always coming on DNO to compare St Croix with Dominica. Your Viellecase boy in power come back things are better in Dominica- there are lots of jobs, food cheap , gas cheap and the red clinic is well. So they say ha ha ha
You stole my name thief!!!
@nina correction remove VAT & stop thiefing poor people that way we will have a surplus to pay higher salaries
????????????????? don’t get it with your comment Morihei Ueshiba???????????????? I am confused …. Where will the surplus come from????? Really confused sir/madam???????
Great advise and recommendations, however i think people like Athie, should try to approach the PM personally and advised him on certain matters instead of quickly running to the media to voice their concerns..i think if all these opposing sides at least try reaching the PM and advised the man he would to listen..
Listen to what. Talk talk. Yes remove the vat but how do we raise the income. That is what I don’t understand with person who like to see things onesided. Yes I would do without the vat but there must be taxes since Governments are not income generating entities but rather public service entities. Countries worldwide are going throuth the economice downturn like ourselves. Would they be willing to donate everytime.
Time for us to understand that we need to develop our destiny. Work hard and not waste our resources and give honest day’s work for pay.
Again the question for most of you are. What are your recommendations for raising the moneys to be used for our public services – Road maintenance, health, Education. Those Public Sectors are not income generating sectors but rather spending sectors which is what Governments do – to subsidise the Public Sector.
FOR THE PM TO GO BACK AND SAY IN PUBLIC THAT HE COME AND BEG FOR DUTY FREE….he already has advisors like tony, nantan, ambassador , RONALD CHARLES and the likes.
let de man talk to the media,
Let me hear your plausible and feasible recommendation Mr. Martin… You people continue to talk but give no useful alternative bearing in mind the world wide economic struggles. You state in your monologue hereinabove: “I cannot offer a prescription right now …” So why raise the issue then?? Many of our CARICOM counterparts have however found it prudent to implement the VAT. GOOD SIR… WE ARE FORWARD MOVING IN THESE TIMES!!!
Thank you Matt W. People that is the point that I am making. We must stop fooling people and making them believe that Government or those who come in Government are Income Generating maniacs who receives money from the tree behind their houses. Monies have to be raised as fund raising so those monies can be spent on the Public activities.
I need to hear alternatives to raising the funding and not just taouching on removing taxes.
We do not pay half the taxes, other persons pay overseas. Yes ideally, I would not want to pay taxes but let us be realistic.
Remove the VAt and what then Civil Servants will have to go home. No Income coming in. Do you want that? Will you provide the monies to pay the PUblic Sector Workers.
So people when you talk offer a prescription not just talk and talk and try to get people to move behind you. Let us educate our people.
Thank you.
I am here in antigua and i have to pay education levy although i don’t have children going to school here. Antigua is now considering imposing the same vat that you guys are crying about, on us. You guys have it easy. I support you 110% MATT W
NO Thank you Matt W and ?????
Are you two actually suggesting that if you do not have a solution to a problem you should not mention that it is a problem?!
Where and in what era do you live?
Athie may not have a suggestion, but he is honest enough to state that. There are many people who may not have thought enough of the problem to speak up on it, but who may have solutions to offer. This is the point of a national conversation; For different people to lend their voices and ideas. If only the people who had solutions (or thought they did) spoke up, we would surely have greater problems on our hands. Its bad enough that most Dominicans do not take action on critical issues, now you would have them keep quiet too?!
Frightful!
I thought we were doing better than our Caricom counterparts? Thought the wise man said we were immune to the economic struggles of the others because of our forward thinking? We were in such great standings that we could “give” money to St Kitts and Antigua and lately even Liat.
where your recommendations
And many more of them produce more than we do and there is no world wide recession, ask India, Brazil and the countries in Asia.
so true
recomendating?