Promoter pleads: Ease up on the VAT

by Marlon Madden

One veteran event promoter wants the next Government to consider giving the entertainment industry a Value Added Tax (VAT) holiday next year as a way of helping the industry regain its footing after witnessing about18 months without any income.

This suggestion has come from Orlando Newton, co-owner of the island’s newest party and entertainment venue in St Lawrence Gap, the Halo Ultra Lounge.

Newton explained that individuals who go partying usually spent hundreds of dollars on which Government would collect taxes and, therefore, removing the VAT from entertainment events for a while should not create an issue.

“The Government [should] allow us to use our VAT to get back on our feet. They are already collecting VAT from the girl who bought the shoes, the hair and nails. We have done a survey and found that before a person buys a ticket for an event, they’ve already spent up to $1, 000 in clothing and preparation to come to that event. So we only get $100 out of $1, 100 and the government is already collecting VAT on that $1, 000,” he explained.

Newton said it was time “the Government understands the industry is important because we help save the economy and bring cash flow again.”

“My sister has not been out anymore, so she didn’t shop and buy a new dress in two years. That means the clothing stores can’t get that [sale]. She doesn’t go to the hairdresser as much and so the money is not rotating in the economy and that creates a lot of issues, including health issues and crime. These are things that are important for us,” added Newton.

His call came just over a week after the VAT-free shopping day, which saw several store owners and supermarket operators reporting higher than usual shopping on that day.

Newton was speaking to Today’s BUSINESS on Monday night on the sidelines of the official opening of Halo Ultra Lounge, which is in the Gap at the former Ship Inn location.

The venue, which investors are hoping will become a major entertainment site, will be one of the major spots for the New Year’s Eve and New Year’s Day celebrations.

Newton said he was looking forward to creating a renewed buzz around partying, live performances, concerts and general development of talent within the entertainment creative industries. Welcoming the opening up of the entertainment industry after about 18 months of dormancy, he said it felt “great”.

Newton, who is one of several investors in NewArch Inc, operators of Halo Ultra Lounge, said he and his business partners were “not sleeping” while the entertainment industry was
not allowed to have events.

“Right now, we are happy for the opportunity. We have been waiting for so long for this.. that being given it right now, we are going to make the best out of it. I believe we will have safe events because we need to have them,” he said.

The founder of TicketPal said he was encouraging anyone who wanted to invest in Barbados to do so now, but he quickly added: “Make sure it is something you love”.

“This investment is not for today or tomorrow, but it is for the future. We want to be able to walk away and leave a legacy that the Barbados Community College students came here [with] their events and tomorrow I see someone who is the next Alison Hinds, the other Rupee, the other Rihanna, and I could say ‘they started here’,” he said, as he pointed to the multi-purpose use of the Halo Ultra Lounge.

“Investing in Barbados right now is great, but Barbadians have a culture of not investing. We cannot blame everybody for coming and doing things that we should do,” he said.

Newton also recommended that authorities introduce financial literacy as part of the school curriculum.

marlonmadden@barbadostoday.bb