By FAY SIMMONS

TRIBUNE BUSINESS REPORTER

jsimmons@tribunemedia.net

THE DAVIS administration has fired back at criticism of its One Tax Bahamas initiative, insisting the system is neither a new tax nor a surprise policy but a three-year-old plan to modernise how Bahamians manage their tax obligations.

In a recorded message released yesterday, Office of the Prime Minister communications director Latrae Rahming defended the implementation of the government’s new tax platform, stressing that it does not introduce a new tax or increase existing tax rates.

“One Tax Bahamas is not a new tax. It does not increase tax rates nor creates a path to new taxes,” he said.

“I repeat, to avoid any room for doubt or political mischief, this is not the beginning of income tax.”

Mr Rahming's comments came in response to criticism from Opposition Leader Michael Pintard, who has characterised One Tax Bahamas as a sweeping expansion of the government's tax administration apparatus and raised concerns over the initiative's implementation and transparency.

The government, however, maintains that One Tax Bahamas is not a new direction but an initiative that has been publicly discussed for the past three years.

Mr Rahming said Prime Minister Philip Davis announced in Parliament in June 2023 that the government was developing One Tax Bahamas as a unified system for tax payment.

He said Mr Davis spoke about the initiative again in 2024, while Minister of Finance Michael Halkitis most recently addressed it during his 2026 budget communication and budget debate remarks.

“One Tax Bahamas is therefore neither a sudden announcement nor a new direction,” said Mr Rahming. “The government's intention to modernise the system has been publicly communicated for three years.”

He acknowledged that despite the initiative having been discussed publicly for three years, there remains confusion over what One Tax Bahamas is — and what it is not.

Mr Rahming said the platform is intended to address long-standing frustration among Bahamians who have had to navigate multiple government processes to access services and meet their obligations.

“One Tax Bahamas responds to those concerns by creating a modernised digital platform to which Bahamians will progressively be able to manage VAT, business license, real estate property taxes, and other services in one place using a Bahamas identification number,” he said.

“For Bahamians this means a simpler process, less duplication, clearer access information, and fewer unnecessary administrative hurdles, particularly for small business owners.”

He stressed that the September 1 launch represents only the beginning of the initiative, with early registration preceding the full implementation of the system.

“Importantly, the 1st of September 2026 marked only the beginning of early registration. It is not the full implementation of the system,” said Mr Rahming.

He said services will be introduced in phases and supported by clear guidance, public education, stakeholder consultation and practical assistance so that no one is left behind.

The government's defence of the initiative comes as businesses and taxpayers weigh whether the new platform will address the practical problems they have encountered in dealing with the tax system.

Gowon Bowe, Fidelity Bank (Bahamas) chief executive while describing a consolidated tax portal as a positive development, said the effectiveness of One Tax Bahamas will ultimately depend on whether it improves the wider tax administration process.

“Having a consolidated tax portal is certainly a positive thing,” said Mr Bowe.

“This new system is not revolutionary. This is just a further consolidation of something that existed before.”

He said there is an important distinction between being able to make tax payments online and improving the administration surrounding those payments.

“The question is, will the administration be more efficient?”

For businesses, he said, some of the biggest frustrations have historically come not from paying taxes but from obtaining the documentation and approvals needed to operate.

“The challenge has not been the portal and paying VAT or paying business license. It has been you need to get an NIB certificate of good standing.”

He questioned whether One Tax Bahamas could eventually allow businesses to initiate more of those processes through a single platform rather than having to deal with multiple government offices and agencies.

“So, can you apply through that mechanism and pay the fees in this one portal, so that you're not having to go for the regulatory side of things to multiple offices and agencies, but you can initiate it all through a single port?”

Mr Bowe also cautioned that the technology itself will not determine whether the initiative succeeds.

“It doesn't matter how sophisticated, advanced, or comprehensive a system is, it is only going to be as effective and efficient as the users of the system, both on the tax administrator side and the end user side,” he said.

He also pointed to shortcomings under the previous system, including difficulties getting consistent assistance and navigating disputes.

“The challenges of the former system was not the system. The issue was the help desk was not particularly helpful because you got different answers depending on who it was that picked up the question.”

“The ability to raise appeals and challenges and disputes was not as straightforward in the system.”

Mr Bowe summed up the implementation challenge bluntly: “Garbage in, garbage out.”