FNM Senator: Govt. Should Not Profit From Global Oil Crisis

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NASSAU, BAHAMAS – The US-Iran war has consequences that extend far beyond the Middle East, as the region plays a key role in not only global energy supplies, but also shipping routes.

Across the globe, there are concerns that the price of everything from feeding ourselves to putting gas in our cars will go up.

Leader of Opposition Business in the Senate, Darren Henfield, says to help alleviate the price at the pumps, the Davis administration needs to take another look at Value-Added Tax on fuel.

Darren Henfield – Leader of Opposition Business, Senate

“Today, I am advising this senate, the FNM leadership will be calling on the government to bring legislation to Parliament immediately to place a cap on the VAT collected at the fuel pump as prices rise.”

Under the FNM’s proposal, VAT would be charged only up to the current average pump price on each island.

If global prices push fuel above that level, VAT would not be applied to the increase.

It’s a strategy Henfield admits is not new.

Darren Henfield – Leader of Opposition Business, Senate

“It is a proven, sensible approach, used in Barbados when global oil prices spiked there. Under this model, VAT on fuel adjusts downward so government is not collecting a tax windfall off the backs of struggling families. It protects consumers, and it keeps government revenue exactly where projections say it should be.”

From the beginning of the conflict, local leaders say there’s nothing to worry about.

Prime Minister Philip Davis said any spike in global oil prices directly affects us, but noted safeguards are in place to cushion consumers during periods of volatility.

Economic Affairs Minister Michael Halkitis says government is taking a wait-and-see approach before considering any revisions to its fiscal plans.

However, Henfield had this to say:

“The only reason Bahamians haven’t felt it yet is because we import fuel in bulk. But let us be clear, the shock is on the way, And when it hits, it will hit hard. Yet this government has done nothing, absolutely nothing, to shield Bahamian consumers.”