NASSAU, BAHAMAS — The Department of Inland Revenue has announced the return of the “Back to School” tax holiday, which will run from August 19th to September 10th.
During this period, merchants will be allowed to sell items on the ‘school supplies’ list at a zero VAT rate. Merchants are reminded to ensure that the pricing and signage reflect the VAT-inclusive price at zero percent.
The Free National Movement (FNM) recently called on government to announce a value-added tax (VAT) holiday for school items during the regular back-to-school shopping season, citing high inflation as a critical reason to assist Bahamians with this annual expense.
FNM’s Shadow Minister for Finance, Kwasi Thompson, released a statement on Sunday, expressing the party’s anticipation for the VAT holiday announcement, which would eliminate VAT for purchases of back-to-school supplies, uniforms, and footwear for a specific period.
Thompson pointed out that Bahamian families have been adversely affected by the effects of global inflation over the past two years, and the increased cost of electricity for consumers adds to their financial burdens. He expressed disappointment in the government’s lack of coherent and sustained policies to combat inflation and assist citizens during this challenging time.
