> The move represents the latest in a
> series of VAT adjustments under the
> Davis administration. After coming to
> office in 2021, the government reduced
> the standard VAT rate from 12 percent
> to ten percent, reversing an increase
> introduced in 2018. Last year, VAT on
> food was cut again, from ten percent
> to five percent. Last night’s
> announcement eliminates the tax
> entirely on grocery food.

How convenient that the Tribune leaves out the point that on coming to government, this same government raised the VAT on food and medications from zero to 10%. They have done nothing, except reduced VAT on food to what they met when they came in . Medication still 10%.

Come on Tribune, do proper journalism, and not trying to leave out the facts.

The so called relief being claimed is the making of the government in raising VAT on zero rated items. They created the hard life for people, and now believe doing this will erase it from the minds of people.

Outside Nassau, owner occupied duplexes were already free from property tax and first time tax for building.

This dude really tryin to make people believe he doing something.

2026 is finally here. Ain't long now. Time for them to GO!

I think you are referring to breadbasket items. I understand this is for all groceries or no?

Yes, a significant amount was there. Yet, they were all zero.

It remains to be seen what "all" groceries are.

However, this the same government who was fighting to say that VAT has to be all one category and can't have VAT at different levels for different things. Interesting how that logic is now out the window.

Agree its a complete shift and I suspect you had political decision vs. a technical one and the latter lost. Actually i'd say it began when when they reduced the food rates to 5%. Halkitis and co were loudly against differing rates but that is gone.

When they increased the breadbasket VAT to 10% they said it was not right to give the benefit to wealthy people and that they would use social security to help those who need it. Apart from an Election coming why the change in policy?

Now remove VAT from Health Care and Prescriptions....I don't even understand why we have to pay VAT at all. What does the gov do with the VAT Revenue?

Read the national budget actual expenditures. VAT is used the same way ever other dollar of govt revenue is. by law revenue by the treasurer is consolidated and paid out.
read articles 128 to 135 of the constitution.

It goes out in govt expenditure. the actual budget expenditures are grouped by the MOF and you can read them in the budget or from the CBB's analysis.

i.e. a bulk of it is govt salaries (teachers, nurses, police, doctors, fire, public sector workers), govt pensions, subsidies of SOEs (water, bahamas air, PHA), social services and other non-NIB welfare. then there rent etc. capital works blah blah blah.

VAT currently covers about 30-40% of that spending (about 1.4b of 3.3b give or take).

Yeah...sure

you asked the question, got the answer i'm not sure what else anyone can do for you.
Information is out there to read, unless you think there is a massive conspiracy that every employee in the MOF or CBB or treasury or any agency hat lends the govt money is a part of.

Bahamasair is a loss making airline, WsC is a loss making corporation, many govt workers are on noncontributory pensions, PHA has millions in uncollected billings.

Where do you think the money comes from to to cover these costs? Part is from taxes the rest is borrowed. The largest % of govt revenue is VAT. I'm not sure what else to tell you.

Remember when this same party with the same old heads that was in power introduced VAT they said it was to pay down the debt?

The Bahamian people have Awoken.. This cycle of Vat increases and reductions before the general elections this year, only to be increased a few months after the general elections this time will NOT fool the electorate anymore.....Ya time up ....pack ya bags ...On election day we will see just who the fools are. Why you increase it in the first place when you came to power ?

EXACTLY

Truth

The Bahamian people have Awoken.. This cycle of Vat increases and reductions before the general elections this year, only to be increased a few months after the general elections this time will NOT fool the electorate anymore.....Ya time up ....pack ya bags ...On election day we will see just who the fools are. Why you increase it in the first place when you came to power ?

It is a good thing
THANK YOU VERY MUCH WILL SUFFICE

You reek of sycophancy, a sharper stench than urea. speak to the points made, why don't you? Or just tap dance for your PLP Gods as always...

It is the Fnm government who increased VAT by 60percent.

... Bahamians continue to allow politicians to insult their intelligence with these patronizing gesture before elections! These guys will do anything to win an election, but they will not take VAT monies out of the consolidated fund and use it exclusively to pay down the national debt like they promised.