By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Prime Minister yesterday hailed the second phase of VAR cuts as “easing pressure on households who need it most” while the Opposition blasted the Government’s silence on two key fiscal issues.

Philip Davis KC, in a statement, said the 50 percent VAT rate cut on medicines, pharmaceutical supplies, baby diapers and feminine hygiene products - which reduced the levy from the standard 10 percent to 5 percent with effect from September 1 - will “make life more affordable for Bahamian families” by tackling the high cost of living.]

“Medicines will now cost less at the pharmacy. Parents are now paying less for baby supplies. Women are now paying less for feminine care products. Families caring for elderly loved ones are now paying less for adult diapers. Reducing VAT to 5 per cent on these essential items is about easing the pressure on households who need it most,” he said.

“This relief is possible because the economy is stronger and government finances are on a sounder footing. As revenues grow and debt comes down, we are making life more affordable for Bahamian families.

“This progress is the result of choices we made to rescue the country from crisis and to drive a strong recovery. But our goal has never been recovery alone. Our mission is to build a bigger, more inclusive economy where economic gains are broadly shared,” Mr Davis reiterated.

“That is why we are expanding opportunities island by island, creating more jobs, supporting entrepreneurs, investing in roads, docks, and airports, modernising our electricity grid, and preparing Bahamians with education, training and upskilling so they can succeed in today’s economy.

“Our continued efforts and focus are to build on this progress, widening the circle of opportunity, lowering costs for families and ensuring growth reaches every island and every community.” However, his political opponents were quick to remind Mr Davis of issues they assert he and the Government have yet to address as the two sides spar over the economy in the general election run-up.

Kwasi Thompson, the Free National Movement (FNM) finance spokesman, accused the Government of failing to answer questions over the $7m overspend and extra borrowing at the Bahamas Public Parks and Beaches Authority despite no visible improvements to the facilities it is supposed to maintain plus the $10m loan to Carmichael Village Development Project.

Referring to the 2024-2025 fiscal year’s fourth quarter debt report, he said in a statement: “The same bulletin confirms a troubling pattern at the Parks and Beaches Authority. Parliament approved a $24m budget, yet in nine months spending exceeded that figure by roughly $7m. We have also seen an $11m loan from the Treasury.

“Yet across New Providence and the Family Islands, many parks remain in disrepair and serious neglect. Where did the money go? Who authorised the overspend? What was borrowed against the future and on what terms? The public has a right to know.”

As for the Carmichael Village Development Project entity, Mr Thompson added: “The FNM is again asking the Davis administration to come clean. The public debt statistical bulletin for fiscal year 2024-2025 records again a $10m loan to an entity identified as Carmichael Village Development Project Inc.

“The Government has not tabled the loan agreement. It has not identified the beneficial owners. It has not published the due diligence, the procurement process, or the terms and security for the public’s money. We asked for these documents months ago. We are still waiting.”

And the Opposition finance spokesman continued: ““Fiscal responsibility and accountability are not complicated. Table the paperwork. Produce the contracts, the loan agreements, the vendor lists, and the payment schedules. Identify the decision makers and certify compliance with the Public Procurement Act and the Financial Administration and Audit Act. If everything is in order, prove it.

“The FNM is clear about our standard for transparency. We oppose off-book borrowing, shell entities with no public trail, and budget breaches without accountability. Every dollar belongs to Bahamian families. They should never have to beg for the truth about how their money is used. Bahamian taxpayers have earned straight answers. Provide the documents. Explain the decisions. Stop hiding the ball.”