By JADE RUSSELL
Tribune Staff Reporter
jrussell@tribunemedia.net
THE Free National Movement blasted the government’s upcoming plans to introduce tax on sugar and excess salt, adding a legally mandated Fiscal Strategy Report has yet to be provided by the government.
In a press statement released on Sunday, East Grand Bahama MP Kwasi Thompson, who is also the shadow minister for finance, lambasted the Davis administration’s planned implementation of new taxes.
“The FNM has been clear and unwavering on the issue of tax reform. As we have said repeatedly, before this government can even begin to discuss new revenue measures, it must put forward a proper fiscal and economic plan to the Bahamian people that explains the context of any revenue proposal and shows reduced wasteful and unnecessary spending.
“It is inconceivable that this government is even talking about new taxes and has failed to provide the legally mandated Fiscal Strategy Report due in November 2022,” Mr Thompson said in a statement.
Companies that supply food and drink have also questioned the government’s plan to implement new legislation that will create a tax for sugar and excess salt as well as try to eliminate trans fats being imported into the country.
Health and Wellness Minister Dr Michael Darville unveiled the plans last week, but could not give specifics on what is being proposed.
Mr Thompson argued the government should be providing relief to the Bahamian people rather than increasing tax burdens on them.
He also questioned if the government has a plan in place to decrease the cost of healthy food to aid in making it more accessible.
“While the increase in the cost of unhealthy food does decrease its consumption, price decreases have a larger effect on diet. Where are the government’s plans to decrease the cost of healthy foods and provide help to those less fortunate to obtain healthy foods? The FNM calls on the government to first implement subsidies for healthy foods such as fruits and vegetables before it increases the tax burden on working Bahamians. The government is once again putting the cart before the horse,” Mr Thompson said.
Mr Thompson stressed any “sugar tax discussion” should be secondary, noting a plan is needed by the Davis administration to address more important issues.
He continued: “We need proper policies to improve the school food environment. We need a national commitment to providing healthy breakfast and lunch meals to all school-aged children. We need to strengthen monitoring of the school tuck shop guidelines. We need a public awareness campaign in collaboration with the private sector and civil society.”
The FNM will not support new revenue measures by the government, Mr Thompson said. He suggested these measures are being taken to support the “extravagance and indulgent spending of the PLP.”
“This administration has been on a wild spending spree. It is spending additional millions of dollars on travel and on consultancies and contracts to any number of persons. Just look at URCA’s proposed budget for conferences, training, and travel in 2023, from $96,521 to $627,500 — an increase of 566 percent.”
“It has refused to follow the law and provide the details on who is getting these contracts. The FNM will not support new revenue measures to fund the extravagance and indulgent spending of the PLP.
At the “same time, this government has raised taxes on the poor by reintroducing VAT on breadbasket goods, medicine and baby care items,” he said.
The FNM is still calling upon the government to provide a fiscal report.
He said: “And prepare a comprehensive white paper on tax and fiscal reform that lays out what you intend to do for revenue and expenditure management for the country. Have a full dialogue with all Bahamian stakeholders. Only then can reasonable Bahamians give consideration to any new measures.”