Bahamas Gov’t Reduces VAT on Food by 50%

• Bahamas Prime Minister, Philip Davis, recently announced the reduction of value-added taxes (VAT) on all food items to 5% from 10% starting on April 1^st. He added that with the reduction, the government aims to bring the economy to a stable and secure footing.
• PM Davis added that the VAT reductions would provide major relief to the consumers in financial terms. The reduction is set to be levied on all food items in stores, including fresh fruits and vegetables, lunch snacks, baby food and frozen foods. However, it would not apply to prepared foods in the deli.
• PM Davis added that the rate reduction will also apply to the importation of all food items and the date of April 1^st will allow merchants and food stores to make the adjustments. 
• Discussing the Bahamas economy from three years ago, Prime Minister Philip Davis said, “it was in shambles, and the finances were in freefall while the hospitals, schools and communities were in deep crisis”.  He also emphasised the government’s efforts in pulling the nation back from the fiscal brink.   
• Furthermore, Philip Davis cited the high cost of living as one of the most stubborn problems of the country and explained that VAT is not the cause of the high price of food but for the ones having the tightest disposable income, reduction of VAT by 50% will surely make a huge difference. 
• He further reiterated his administration’s commitment to working towards lower the cost of energy, improve the energy infrastructure and provide affordable housing and healthcare.

(Source: WIC News)