{"id":16022,"date":"2018-05-31T11:10:04","date_gmt":"2018-05-31T15:10:04","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=16022"},"modified":"2018-05-31T11:10:04","modified_gmt":"2018-05-31T15:10:04","slug":"bahamas-to-increase-vat-to-12-by-july-1","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/bahamas-to-increase-vat-to-12-by-july-1\/","title":{"rendered":"Bahamas to increase VAT to 12% by July 1"},"content":{"rendered":"
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The government of the Bahamas will be increasing Value Added Tax (VAT) by 12 per cent as of July 1.<\/p>

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This was revealed in the government\u2019s 2018\/2019 Budget Communication implementing the\u00a0\u00a0<\/span>Policy Agenda and securing core fiscal objectives that was presented to Parliament by Deputy Prime Minister and Minister of Finance K. Peter Turnquest on Wednesday.<\/p>\n

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K. Peter Turnquest<\/figcaption><\/figure>\n

The government projects the VAT increase will help it reap US$1.2 billion in revenue in the next fiscal year, a 60 per cent increase compared with the forecasted VAT revenue for 2017-2018.\u00a0<\/span><\/p>

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Turnquest said this was indicative of the government choosing not to wait until it is too late to shore up the economy, but opting to act now and act responsibly.<\/p>

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\u201cSpecifically, we are increasing the taxation of gaming house activities through the introduction of a sliding scale of rates applied to taxable revenue, namely: up to $20 million, a rate of 20 per cent; between $20 million and $40 million, a rate of 25 per cent; between $40 million and $60 million, a rate of 30 per cent; between $60 million and $80 million, a rate of 35 per cent; between $80 million and $100 million, a rate of 40 per cent; and over $100 million, a rate of 50 per cent,\u201d said Turnquest.<\/p>\n

He said there will also be the taxation of gaming patrons through a five percent stamp tax to be levied on both deposits made by patrons at the gaming houses and any non-online games\/digital sales.<\/p>

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In addition, there will also be an increase in the various Immigration fees; introduction of new port fees; the Real Property Tax on foreign-owned vacant land to 2 per cent of value, up from 1.5 percent; licensing fees on large commercial vehicles by $50 for Class B and Class C vehicles; and increases to police record fees, fingerprinting fees for casino employees, and Labour Certificate fees.<\/p>\n

\u201cMost substantially, the government is proposing an increase in the rate of Value Added Tax from the current 7.5 percent to 12 percent effective July 1st.\u201d<\/p>

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\u201cOur government fully appreciates the sacrifice that the substantial increases in the VAT rate and other taxes will represent for our citizens.But as I have repeatedly said on record: this government was elected to do what is right for the welfare of the country and not to do what is politically expedient or politically popular.\u201d<\/p>

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\u201cFacing the situation that we have, we could do as governments have done before \u2013 and simply present a misleading budget with under-budgeted allocations and hidden obligations. We could have kicked the can down the road and borrowed some more \u2013 delaying the inevitable day of reckoning.By playing this game we would have only made a bad situation worse. The country\u2019s bond rating is at junk status.\u201d<\/p>\n

The Finance Minister\u00a0\u00a0\u00a0<\/span>also attempted to soften the blow of\u00a0the higher VAT rate by unveiling VAT free breadbasket items, duty reductions and exemptions.<\/p>\n

\u201cEffective August 1, we are eliminating VAT on all breadbasket items, with the exception of sugar, as sugar will \u2013 for health reasons \u2013 be removed from the list of breadbasket items,\u201d he said.<\/p>\n

These items include butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, tomato paste, baby cereal, soups, broths, powdered detergents and mustard among other things.<\/p>\n

He said VAT will also be eliminated on medicines and residential insurance.<\/p>\n

Turquest said the duty on aeroplanes and helicopters will also be eliminated\u00a0\u00a0<\/span>\u2013 in an effort to build an Aeroplane Registry Industry.<\/p>\n

\"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

The government of the Bahamas will be increasing Value Added Tax (VAT) by 12 per cent as of July 1. This was revealed in the government\u2019s 2018\/2019 Budget Communication implementing the\u00a0\u00a0Policy Agenda and securing core fiscal objectives that was presented to Parliament by Deputy Prime Minister and Minister of Finance K. Peter Turnquest on Wednesday. […]<\/p>\n","protected":false},"author":3,"featured_media":15011,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-16022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regional"],"yoast_head":"\nBahamas to increase VAT to 12% by July 1 - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/bahamas-to-increase-vat-to-12-by-july-1\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bahamas to increase VAT to 12% by July 1\" \/>\n<meta property=\"og:description\" content=\"The government of the Bahamas will be increasing Value Added Tax (VAT) by 12 per cent as of July 1. 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