Our government in its wisdom has decided to tax the 10 000 tax-free benefit allowed to pensioners who have put aside these savings for a rainy day when they are wizened, defenceless and unproductive. Well ‘cud’dear’, you are taxing us twice. These insurance investments have been put aside net of taxes already paid when the pensioner was a productive member of the Barbadian economy.
It was a decision born of wisdom and an acknowledgement of rendering unto Caesar what was Caesar’s. It was a decision that should have been complemented and complimented by Government. It was a decision Government should have seen as an effort of the individual to be independent in the golden years. It was a decision Government should have seen as relieving it of the obligation of looking after the senior citizen. Looking after the senior citizen would involve strain on the Queen Elizabeth Hospital, geriatric hospitals, old age pension and a general dependence in later life on the state.
The Wild Coot is particularly disappointed and more so as he shares the disappointment with the army of members of Barbados Association of Retired Persons (BARP) whose pain he feels. Indeed, these are the ones who would be most affected, never mind it applies across the board to all Barbadian pensioners.
But you know that the Government in its wisdom, or perhaps anxiety to appease its cavernous appetite for taxes, has now further involved the Central Bank. It offers debentures of 7.65 per cent for these tax demands. I say again, the offer distorts the market in a bad way although the Government/Central Bank does not seem to care about these things. So intent on the part of the Government in bringing down the deficit, as it claims, that it cares not whose corns it mashes. The efforts are definitely counterproductive and a growth target of three per cent has become an elusive dream.
While we are on the subject of dreams, was I dreaming when a gorgeous young woman complained to the Wild Coot that she was almost put into the hands of the police had she not been able to get people at her table at a restaurant to dig deep into their pockets and come up with the fare after they had eaten well at lunch? She had tendered her credit card, and to her amazement it was summarily declined. Imagine the embarrassment for the lady.
“I don’t understand this,” she offered in a soft voice to the waiting waiter. The restaurant was full. All at her table were embarrassed and the face of the waiter showed anger – as if these “poor great” people only have show.
The next day as soon as the bank was opened, the woman demanded to see the manager. She had blood in her eyes. “How can you decline my credit card and I have so much money in the bank? Beside, I have savings and a mortgage with your bank.”
The manager was full of apologies. He explained to the lady that their computer system had been hacked and declining transactions was for the woman’s protection. Of course that was not a satisfactory answer as a declined credit card in those circumstances is like bouncing a cheque.
There is another way of operating without embarrassing the customer. Many times the Wild Coot has been caught in a similar position either because there was outside interference with the bank’s computer or he was in some country with which he was not normally associated. In all of such cases, the business establishment would be immediately contacted requesting to speak to the bank’s client so as to verify the authenticity of the transaction and assure the merchant of payment. This is common courtesy.
Customers are advised that when travelling and the destination is not one associated with their normal movements, they should contact their credit card provider and alert them in advance of their destination.
Perhaps Barbadians have heard the term “Trans-Pacific Partnership” (TPP). It is an agreement between 12 nations (not China) for trade preferences. Maybe we shall hear more about it soon. Former Prime Minister Owen Arthur just suggested that Caricom should be broadened to include Cuba and the Dominican Republic. If the TPP pact eventuates, it will have serious consequences for Barbados – which was not invited to the deliberations which lasted five years.
• Harry Russell is a banker. Email quijote70@gmail.com