Has the folly of wisdom found a resting place in Barbados? Has Barbados, known for high scholarship, joined the sliding crew? In these days these are baffling questions.
Friday last, our eminent Dr Clyde Mascoll raised the debate about the responsibility of the media/journalists/columnists. Perhaps there had been too many warnings about the wrong direction in which we were going. Look how writers have been crying out about the scandalous use of the printing press by the Central Bank for money. Relevant issue. But are the various ministers listening or is there a know-all intransigence prevailing? We educate, we evangelise, but is common sense lacking? Relevant issue.
For example, “If you are unable to pay the tax, pay it still and the Revenue Authority will debate whether to refund all or part of thereof.” A conundrum par excellence.
The bills of Government at the moment are tremendous. The number of people owed both domestic and international are too numerous to name. Indeed, it has caused embarrassment here, there and everywhere, although our politicians are not averse to be shamelessly and without gain gallivanting all over the world.
We have managed to roll over some debts, mainly the domestic ones, but we have been careful so far to honour in one way or another our foreign debt. I have been outlining (probably never read by the politicians or the Central Bank which has not yet answered my question about the billion dollars subordinated debt destiny) the prospect of having to renege on a debt, and worthy of study is the dilemma in which small countries find themselves when on due date, the debt becomes so overdue that the lender is willing to accept cents in the dollar and the way is open for vultures to place pressure on the Central Bank/government. A relevant case in point is Argentina now and 13 years ago. The case has worldwide implications. The courts in New York have upheld the rights of the vultures.
But we are not yet there. Even so vultures come in other forms when rich investors, knowing our perilous position, invest heavily and strategically in our country with the advantage of extracting inordinately more than the foreign exchange originally invested, and the country is unable to staunch the bleeding. (See the case of Dominica and the Venezuelan oil initiative.) We need to be careful now that that is not happening. We hail the foreign exchange now invested as it comes like a life saviour, but the sting might be in the tail of extraction and hegemony when we are caught hook, line and sinker.
The municipal solid waste tax was first touted as an immediate injection as Government urgently had need of the money – by June 2014, then by July 2014. The need cannot now be so urgent if the deadline date can be postponed until December 2014. So what was the very urgent and immediate need? Seems to me that it was only a general need for money to fill Government’s gaping hole or even an unwise plan envisaged. If that is so, then let the whole population be involved in the tax effort and not only those who own property. There is a substantial percentage of our society that pays rent only, but create waste (if you want to use the waste argument). The middle class has already been targeted for an unequal share of taxes and our middle class does not comprise only of landowners.
What is iniquitous is to give people the feeling that their property is on the line while it is not clear that the legislation captures the property or even the people themselves. If it captures the people, all the more reason why it should be repealed, as enforcement will require a serious extension to the premises up St Philip and not even a BOLT could be accommodated now.
The municipal tax is a more than direct impact on the banking system in Barbados, especially the treasury department; in addition to asset tax. Furthermore, the pressure on the middle class and all landowners caused by the rise in cost of living is having an effect on the banks. This is something that is not totally external. Government, despite it claiming that it is not, is contributing by high taxation to the undermining of the middle class – the underpinning of the Barbadian society. This obviously has an effect on the banks through layoffs and mortgage failures.
• Harry Russell is a banker. Emai [email protected]
