Government can wreck a business by confiscating its money by taxation. – Owen Paterson (1956- ), Conservative member of the British Parliament since 1997.
THE MORE INFORMED BARBADIANS become, the easier it will be to reject the notion that taxation is a corrective measure for every problem faced by governments.
If there is one consensus among tax experts and economists, it can be stated thus: “Tax policies that encourage people to work, save and invest are more beneficial to a country and its economy than policies that seek only to extract large tax revenues, restrict disposable income and fill Government coffers.”
Given the state of Barbados’ economy, it is surprising to hear such strident calls for higher taxation on sweet drinks.
More recently, a call has come for taxation on hamburgers, fried chicken and potato chips, categorised as “fast food” but nevertheless the daily diet of a significant number of working-class Barbadians.
There is a misguided belief that because Barbados’ fiscal deficit requires large inflows of money, taxation is the problem-solver.
Obviously, there are better ways to deal with highly sweetened drinks and unhealthy foods being served by restaurants and canteens across the island other than taxation that will ultimately be passed to consumers.
The reality is that healthier alternatives are already out of the reach of the average Barbadian, who is limited to Hobson’s choice.
Instead of increased taxation, I am suggesting that Government pursue the following:
• Enforce current laws to punish manufacturers, importers and retailers of highly sweetened drinks and unhealthy snacks for breaching prescribed health standards.
• Amend, enact and enforce any legislation that is currently inadequate to deal with any breaches of prescribed health standards.
• Offer incentives and/or tax concessions to businesses offering healthy alternatives to the public.
• Implement policies and regulations that would ensure healthy food alternatives are subjected to a lower rate of taxation.
• Maintain a cadre of well trained individuals to carry out unannounced inspections at food establishments.
Implementation of the above would no doubt see an improvement in the health of our citizenry and a reduction in Government’s health budget, and be unlikely to wreck anyone’s business.
– MICHAEL RAY
