Budget Tax Rises 'Necessary Evil'

 

Budget Tax Rises 'Necessary Evil'

 

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A LEADING small business consultant yesterday called on the Government to “be creative” and examine the Family island development model, telling Tribune Business there were potential untapped revenue streams in the culture and heritage sectors.

While many businesses have expressed concern over new and increased Government taxes, Mark Turnquest, principal of Mark A. Turnquest Consulting, described them as a “necessary evil”.

“Due to the economic environment and the lack of a diversified economic model, we have to rely on what I call recurrent revenues from existing revenue streams,” he said.

“What we need is a bottom-up approach of creating new revenue streams from creative markets in agriculture, fisheries, information technology, craft, Junkanoo and those other exciting new revenue streams, because the existing model we have now is maxed out.

“All you can do is keep on taxing through import taxes, Excise taxes, real property tax and Business License. What the Government really needs to do is reexamine the Family Island development model,” Mr Turnquest added.

“I know Bimini is there, and they are only looking at one or two, but they have to look at the others in terms of the existing heritage and culture, and the revenue potential they can create. All they have to do is key in some infrastructure development. You are looking at 15 islands with no major economic impact.”

Mr Turnquest called on the Government to “meet SME’s in the middle”.

“The taxes could not be avoided,” he added. “The new Value Added Tax (VAT) is another tax the small man is going to feel one way or the other. That’s the problem; you’re taxing the same base. The Government needs to meet SME’s in the middle. They aren’t serious about us. That is why continue taxing the small man the way they do, there is no creativity,”

Mr Turnquest said there was a rise in entrepreneurial spirit in the Bahamas, but what was needed was the right funding mechanisms.

“Right now, the SMEDA is coming on, but we need to have a serious discussion on this national funding mechanism or scheme so we can make sure that persons who get in business receive the funding, in addition to all the marketing and accounting support so that they can be shepherded for at least a year,” he added.

“Entrepreneurs are still in a fight but we just need some creativity on all levels.”