NASSAU, BAHAMAS – Opposition Free National Movement (FNM) Leader Michael Pintard said the opposition does not support an increase to the Value Added Tax (VAT) structure at this time, consequently opposing recommendations by the International Monetary Fund (IMF).
The IMF, in its Staff Concluding Statement of the 2024 Article IV Mission recommended a 10% increase to the VAT rate and the introduction of personal income tax for top earners among measures that would help the government meet its debt target of 50 percent of GDP by Fiscal Year 2031.
While The Davis administration noted that there is no plan for an increase to the current tax regime, which stands at 10%, Pintard said government has to find other solutions to arrive at its debt target.
Pintard noted that government has refused to take on recommendations by the opposition, such as reducing its “excessive travel with large delegations.”
Meanwhile, the IMF recommendation came hours after Prime Minister Philip Davis told reporters that he is more focused on reducing the cost of living stemming from inflationary pressures.
VAT was introduced to The Bahamas in 2015 under the Christie-led administration, and was increased to 12% under the Minnis-led administration.
The Davis-Cooper government decreased it to 10%, however increased it from 0%-10% on breadbasket items – a decision the opposition has continually called on government to reverse.
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