Government’s decision to amend the Value Added Tax Act to allow for the 17.5 per cent tax to be collected for online transactions, has received a thumbs down from the United Progressive Party (UPP).
In a statement released this afternoon, the UPP contends that the tax will only serve to hurt small businesses while getting consumers tangled in Government’s new revenue collection dragnet. The UPP is also concerned that Government is unnecessarily outsourcing “sensitive” aspects of its revenue collection.
“This tax comes within the context of the fact that the persons who have benefited most from online purchases, are small businesses. It is because of the direct access to markets for the purchase of inputs into the creation of local goods and services that many small businesses have been able to thrive in a rather challenging economic climate,” the UPP argued. The party questioned whether the move was designed “to destroy these creative businesses in order to satisfy the larger businesses which play the role of wholesaler”.
The three-year-old party is of the view that due to the limited purchasing power of small businesses, the online tax is inherently discriminatory to those enterprises.
“It seems clear that this VAT will discriminate against small businesses in its application. It is not clear why those businesses which buy goods from platforms such as eBay and Amazon are being forced to pay this VAT upfront, whether the item is exempt or zero-rated, [only to later] queue for a refund. VAT-free computer equipment for all is another initiative that seems to now be undermined. Businesses, which are able to buy in bulk from suppliers, other than through e-commerce platforms, would be exempt from this additional burden,” the Lynette Eastmond-led party pointed out.
The UPP also accused the Barbados Labour Party (BLP) Government of attempting to privatise some of the functions of the Barbados Revenue Authority (BRA), which could have been undertaken in house with the right technology.
“This seems to be an effort to privatise the more lucrative aspects of the Government. The BLP proposes to hire companies and or individuals to collect the online tax. There is no reason that with the right technology BRA could not undertake these collections. The UPP wishes to understand why this BLP administration is choosing the most sensitive features of the Government to consider for privatisation,” the statement queried.
The political party went on to demand further clarity from Government regarding the cost of getting online companies to alter their platforms in order to facilitate the collection and passing on of VAT.
The statement noted, “Based on the VAT Bill, it would seem that this administration believes that it has jurisdiction over foreign companies such as Amazon and eBay to cause them to modify their platform for the collection of taxes on behalf of the Barbados Government. The UPP needs to know what Government would be paying these processors to collect VAT on its behalf… Why is Barbados imposing multiple taxes on the same taxpayers in increasingly complex forms?”
Why cant bajans have something nice .
BLP well on way to be a One Term Government
Mashing up Small Businesses
Came to Power saying we over TAX but still piling on more TAXES on Poor People while giving the RICH tax breaks
Mia Copperfield the greatest Illusionist
I was Fooled that Mia Cares, but now I see Mia Careless about Poor People
That NSRL don’t look so bad now does it??? -_- ….Can’t get even the simplest of things to enjoy bout hay. The average bajan can’t afford a house, a brand new car. So bajans was like i could buy a lil sain online to enjoy the fruits of their labor. NOPE SCREW THAT. In a few months our cost of living was shot up by alot AND de dam Busfare raise aint even come yet among other measures that is maybe not being said or told to the public.
Geeze, Lynette! Leave some air for the annihilated DLP to breathe, nuh!
You continue to suck all the oxygen from the room and got the slimy Dems gasping for a little O2 to make a comment on serious political and economic matters.
Since you and Traitor Joe keep upstaging the crooked Dems, they cannot even get the promised shadow Cabinet off the ground.
No more fancy videos, no rats cussing, no outrage, no 2 hour videos from the public…. This is all fine and dandy. Can we now tax our way out of a recession?
Mia de monster
Keep watching d woman and hush wunna mouts…….
We always in Barbados grab the bull by the tail, the two companies named has cause destruction of the high street in the UK…. We always tend not to learn from what’s going on in the economic world, why Barbados feel they would win,, our Government cant even collect local taxes of any description efficiently……
Vat collection in any country is a problem……..
DEM still in the DARK…dey in got no POWER down dey since DEM lights get TURNED off last MAY so they can’t get no SHADOW in DEM Headquarters.
Even the BLP…sorry the BL and P went back for their cables.
DEM should rent a couple of fireflies and get some light instead of maliciousing in and minding the peoples bizness.
….and SONYFAIR ,I will REMIND you again….since your crooked Democratic LABOR PARTY is NOT RELEVANT as a POLITICAL PARTY in the DAY TO DAY runnings of the Country since MAY LAST YEAR…..YOU will have to GO BACK IN THE PAST to talk about DEM…that, stupid… IS going back in the PAST.
What about people who have to pay for their professional exams online? Stupse
@Harry Turnover
You are so right! If there is no present or future for the slippery Dems, what else can we talk about them other than their PAST crooked deeds?
People wake up see what’s going on.
I am surprise that the banks agree to this , as a consumer I will stop all online purchases. It makes no sense to shop online, the amount of taxes to get an item will be prohibitive, remember you are also taxed in the country in which the goods originate, and if ever you ship the goods to Barbados you are taxed again by customs.
Online shopping will make absolutely no sense, I guess government will achieve their goal of reducing foreign currency spending.
I want to hear from the banks, how will reduced online transactions affect you.
Some people do not know when to quit and would just do or say anything to get attention regardless of if they are right or wrong!
Lynette Eastmond this image of you is giving me “What wunna ent gine do is…” vibes, HOLD DE FIRE UNDER DEM FOOT AND MEK DEM HOLLA
Large companies smiling all the way to the bank. Smh
The UK is considering the same, because shops are closing due to online shopping, another thing it’s adding to the job losses. So people you can’t have it all.
Well to be quite honest I was already ” BULLED”, ” RAPED” by that tax that I knew nothing of SO I WON’T BE SHIPPING ANYTHING AGAIN.
Barbados has become the land of taxes soon we gine be tax for the air we breath
LYNETTE EASTMAN got goat (ZIEGE) written all over her face, if you buy some thing in barbados with your credit card dont you pay vat, when you go over seas and ship home barrels dont you pay vat, so if the rules say as long as you using credit cards to do online purchases or using it aboard you must pay vat then what is the issue, that is one of the reason why the country then is placed under strain,foreign currency level down, country down , you need to pay for your actions, you all want the best of e very thing but dont want to stand the responsibility, want to walk the road looking good in the latest, latest house hold products, latest devices etc, and want the other tax payers and government to pay for your high cost of living, its dont belong to your next door neighbor or neighbour or nabour, its yours, so stand up and pay for it, all yall can do is break down a country then cry foul,
Gimme de vote and watch ma mash up ya pocket now we paying through we nose.
Departure tax up, now to buy your ticket online that up too. Smdh.
LYNETTE EASTMAN ,WHY YOU SO AGAINST ON THE COUNTRY COLLECTING TAXES (VAT) ON GOOD BOUGHT OUT SIDE OF BARBADOS WITH CREDIT CARDS ANYWAY, DU BIST NICHTS ALS EINE MUSCHI
The question has to ask: Is the lady making sense. If so, it has absolutely nothing to with upstaging the DLP or BLP.
This tactic of calling the DLP all kinds of derogatory names is just the continuation of the BLP supporters simply relying on “OPTICS”.
I see this as an unnecessary burden on the average Bajan. There is nothing being manufactured in Barbados and therefore the only people being hurt are predatorial importers and retailors. Why have them import and sell what they like to the public, we the public and import their own choices of product for much less? Retailers should not be guaranteed profits by government policies which force the public to pay more for items they can easily source on their own.
If the government wants to make money the keep the tax around 5%. 17% is ridiculous.
The only thing they could levy a tax on fairly is BARBADIAN online businesses.
Now if you see further price increases don’t be surprised.
@BARKER ANTONY ,MSY TERIOUS, TENNYSON DRAKES,IDIDNT HEAR YOU ALL WHEN THE DLP WAS CARRYING WAY THE MONEY, AND FORCE THE BAJANS INCLUDING YOU TO PAY A MILLION DOLLARS A MONTH TO INNOTECH, AINT HEAR YOU WHEN INNISS WAS MAKING DEALS IN THE DARK WITH ICBL, AINT HEAR YOU WHEN DAVID THOMPSON AND PARRIS TOOK CLICO MONEY, WHICH THE GOVERNMENT GOT TO PAYBACK, WELL YOU INCLUDED, JA, DU KOMMST
Uhmm….more TAXES again??Roll eyes.
Most times the taxes are way way way more higher than the goods themselves and I search for alternatives.
I think taxes are high enough. Period.
@ROGER PARISH. Sei sachlich und nicht beleidigend. Es ist hier nicht angebracht!
Lerne bitte die Meinung anderen zu respektieren!! Danke
@Carl/ Harry, why don’t you comment on the article which has nothing to do with the DLP…….OOHH sorry you can’t….. You agree with Lynette don’t you, me too. The DLP suppose to be dead as far as you are concern and still you can’t seem to keep them out wanna mouth. The DLP got wanna sooo good!!
I had better be getting back all my taxes , getting fed up with this. Can`t afford nothing here not my child clothes, can hardly afford food. this just sucks
@RACHEAL NICHOLLS, LOL,, SEHR GUT,, ICH WOLLTE NICHT RESPEKTLOS SEIN, ABER ICH KAAN DIE IDNORANZ DER MENSCHEN EINFACH NICHT ERTRAGEN, RESPEKT VOR DIR WERDE VERSUCHEN MEINEN TON ZU ZUGELN, BUT SHE STILL RUB ME THE WRONG WAY, AND THE RULES ARE THE RULES, BUT HOW ELSE MRS EASTMOND PROPOSE TO RETRIEVE ON CREDIT CARD BUSINESS, IT GINE BE EITHER DIRECT OR INDIRECT TAXATION,
Just de udda day ( MAY 25th) Most ah Barbados was jumping fah hot @ de red wash off, wha happened?! Are U not still entertained!?
I agree with Mrs Easmond 100 percent. It will be a massive blow to small business. Remember now the vat threshold for registration was moved to $200,000 by Chris Sinkyuh so none of these small businesses will be able to reclaim the online vat. Then at the port they will still have to pay duty and vat again. They already are faced with increase fuel cost already. This tax is what I would expect from the last government a typical admission that your customs depart are unable to collect the duties or the post office and courier shoppers are somehow avoiding it. It’s that’s the problem then deal with it don’t double tax the small guy who is already under pressure for what is clearly an ineffective government system. We elected you all to avoid all this crap don’t start to now make it worst as opposed to better.
I’m convinced we were all bamboozled and hoodwinked. The government knew full well that they had to replace the NSRL revenue and got there and played with our emotions professing that they will abolish that evil tax. Along with the lower corporation taxes expected from businesses they now have to find the missing revenue that the NSRL would have provided. What I hate most is the propaganda and the emotional game. Talk to me straight and give me the cold facts, none of this other rhetoric.
Black Barbadian consumers can get around this by using foreign based credit cards.
The next thing MIA WHO IS SUPPOSE TO CARE, but only for WHITE BAJANS and INDIAN MUSLIMS, is going to tax is the AIR OUTSIDE WHICH WE BREATHE.
Recall this is the same stupid woman who said THAT BAJANS are over taxed.
But then again she was the LEADER OF OPPOSITION at the time when she made those remarks. What a difference moving from Leader of Opposition to PM makes.
Not only foreign based cards but several of the courier companies are already offering to have their US office place the orders and do the payments. On top of that those with family can buy a preloaded Amazon card and send it for their family here. That’s why it is an assanine and backward tax. Really disappointed this government would try this stunt.
BART: A fantastic comment. Thanks.
isnt it amazing that instead of commenting on the article…carl…liz cantankerous can still talk about the dlp? if the party dead why u so jittery….u think bajans foolish…u scared under that false pretense and doing anything to try to keep people focusing on the past….u are not fooling anyone but urself…lynette making sense
SONYFAIR when YOU accused me in the PAST about going back in the PAST …WERE YOU COMMENTING on the ARTICLE ?
…and btw….this article has very much to do with that now DEFUNCT and CROOKED DEMOCRATIC LABOR PARTY who MESSED up this Country in the PAST.
Were it not for those CROOKED DEMS,this GOVERNMENT would not have had to implement those measures to get the Country walking again unlike 2008 when all ya were handed GOLD and SQUANDERED it.
You and your fellow yardfowls here trying to DISCREDIT the BEES and I doing the SAME to the DEMS…and wunna got a problem with that…who de RH is wunna?wunna doan want all ya DISMAL RECORD to REMAIN in the PUBLIC DOMAIN.
The JUDAS LABOR PARTY talks to the people…the UPP doing the same…where is the RH DEMOCRATIC LABOR PARTY is all that I asked’
…but SONYFAIR…after all that DRIBBLE you still DIDN”T COMMENT ON THE ARTICLE either…wtrh..looks as though you are more interested in my comment and what Carl Harper had to say.
Maybe you should invest in a spittum..hope you doan do like PATTY and hold it in your lap and still spit up…but to be on the safe side READ THE INSTRUCTIONS.
…and PATTY, everybody like they making sense EXCEPT your DEFUNCT DEMOCRATIC LABOR PARTY…did it make any SENSE whatsover to have the two MOST DECORATED and EXPERIENCE LOSERS as allya PRESIDENT and VICE PRESIDENT..at this RH time?..after a MASSIVE WIPE OUT,SHUT OUT and SHUT DOWN?…I feel that is what got that Carson C Cadogan going off he rockers…all that bottled up steam and anger now coming out…de man hollering hard den.
….I feel that is what got that Carson C Cadogan going bonkers…
The BLP has always been known to kill small businesses while satisfying big businesses, soon typical
harry needs help..he cant have a civil conversation with spuing out venom and throwing tantrums
Harry turnover selling he goods up bush hill so he customers won’t get this tax.
The big ups and merchants already got foregin credit cards so they could escape this burden that only the small man will bear.
CODAGON you talking bout MIA gine tax the air, i gine speak under correction, but didnt the DLP give the BL&P the rights over the sun, meaning that if i got solar pannels and i want to sell (hook up) my neighbor i got to get permission from the BL&P to sell my solar power, i speaking under correction, dont want to make my self look any more worst that a BERGZIEGE