Government preparing to reduce VAT on fuel

Government preparing to reduce VAT on fuel

NASSAU, BAHAMAS — Prime Minister Philip Davis said his administration is finalizing a plan to reduce the value-added tax gas retailers pay for fuel to provide relief to them and consumers.

His comment came during a press briefing yesterday in response to fears surrounding a looming recession.

Prime Minister Philip Davis at a press briefing at the Office of the Prime Minister yesterday.

“We are now considering what we are going to do with the retail gas stations, seeking to reduce some of their taxes on VAT to be able to pass that on to consumers at the pump. That is something in the works,” he said.

Talks between retailers and the government have been ongoing for months as they seek a solution to soaring global gas prices.

However, the price of gas recently declined. Vasco Bastian, vice president of the Petroleum Retailers Association, has said it is costing a little less now for them to buy gas.

Davis, meanwhile, also responded to Free National Movement Leader Michael Pintard who accused him on Wednesday of failing to deliver on his promises for teachers and nurses.

Pintard was referring to Davis’ announcement during the budget debate in May that, subject to agreement from unions, teachers will get a raise and nurses will get a retention bonus. Since then, the nurses and teachers have threatened to go on strike over issues related to their benefits.

Davis said: “I gather that the message that was left out there by the press conference was that I did not fulfill the promises that I made to the nurses and the teachers.

“But far from it. If they were able to identify what specifically I promised and didn’t fulfill I’d be able to answer them more specifically.

“But suffice it to say, what I did promise the nurses was that whatever they were owed in respect to promises made and contractual arrangements made I will satisfy. That has been done.

“We have paid them all their backpay and all sums that were due to the nurses, that was done.

“In respect to promises made going forward with increases in salaries, if they were to listen to me, we have budgeted for the eventual increases in salaries for both nurses and teachers. It’s a question of settling the agreement with the union as to what those amounts will be going forward and that’s an ongoing process and from my understanding, they are very close to dealing with those issues.”