Government pushes back on One Tax concerns, says platform will simplify tax compliance

NASSAU, BAHAMAS — The Government has moved to ease mounting concerns over One Tax Bahamas, insisting the initiative is not a new tax or a pathway to higher rates but a modernised digital platform intended to simplify how individuals and businesses meet their existing tax obligations.

Senator Latrae Rahming, Director of Communications in the Office of the Prime Minister, acknowledged that there has been significant confusion surrounding the initiative ahead of registration beginning on September 1.

“One Tax Bahamas is not a new tax. It does not introduce higher tax rates, nor does it clear the path for new taxes,” Rahming said.

He explained that the platform will progressively bring VAT, business licence, real property tax and other government services under one system, which taxpayers will access using a unique 10-digit Bahamas Identification Number (BIN).

“For Bahamians, this means a simpler process, less duplication, clearer access to information and fewer unnecessary administrative hurdles,” Rahming said.

He added that the platform should be especially beneficial to small-business owners who often struggle to navigate multiple government systems.

Rahming said public education, stakeholder consultation, clear guidance and practical assistance would remain central to the phased rollout to ensure Bahamians can properly use the platform.

His comments come amid calls from the Opposition for the Government to immediately pause the rollout over concerns about consultation, privacy protections, cybersecurity and the readiness of the business community.

Free National Movement Leader Michael Pintard argued that the initiative represents a significant public policy change rather than a routine modernisation exercise.

“This is a sweeping and unprecedented expansion of the Government’s tax administration apparatus that will ultimately require every Bahamian taxpayer to obtain a unique government-issued tax identification number as a condition of accessing tax services,” Pintard said.

“That is a major public policy change, not an administrative update.”

Pintard questioned the absence of the Minister of Finance from the public rollout, arguing that an elected official should explain and defend a policy that fundamentally changes how taxpayers are identified and their information managed.

He also criticised the implementation timetable, warning that businesses may not have adequate time to understand the new platform, test its functionality, train employees and adjust their operations.

“A project of this magnitude should be preceded by extensive consultation, public education, pilot testing, and parliamentary scrutiny,” Pintard said.

The Opposition leader also raised concerns about the centralisation of sensitive personal and commercial information. He said the Government has not adequately explained who will have access to the data, which agencies will be permitted to share it, what cybersecurity safeguards will be employed or what remedies will be available if taxpayer information is compromised.

“Government should be designing systems with the public, not imposing systems on the public,” he said.

The Department of Inland Revenue has said One Tax Bahamas will replace the fragmented arrangement under which VAT and business licence services are managed through the One Tax Administration System, while real property tax and other obligations are handled through separate platforms.

Controller Shunda Strachan previously announced that the first phase would focus on registration for the new BIN.

“One Tax Bahamas officially launches to you, the Bahamian people, on the 1st of September,” Strachan said.

Taxpayers will need to obtain a BIN before registering for other taxes and accessing services through the portal. The number will eventually allow individuals and businesses to manage real property tax, VAT, business licences and other government-related transactions.

The BIN will also be required to import goods and is expected to become the vendor identification number for individuals and businesses receiving government payments.

The existing Tax Identification Number will remain the unique identifier for VAT, while the BIN will provide access to a broader range of tax information and services.

BIN registration begins September 1, while the VAT and business licence modules are expected to launch in November. The real property tax module is scheduled to come online in 2027.

Businesses will require a BIN for the 2027 business licence renewal period. Fourth-quarter VAT returns will continue to be filed through the existing system, while filings for the first quarter of 2027 and beyond will be processed through the new portal.

“There’s no need for panic because we have started early,” Strachan said. “BIN registration, like I said, starts September 1, but really, you’re going to need your BIN for the upcoming 2027 business licence renewal period. So, we’re saying to people, come in early, start early.”

Strachan said the Oracle-based platform should improve the department’s ability to manage heavy online traffic, particularly during the annual business licence renewal period. Training sessions and online tutorials are also expected to assist taxpayers.

Pintard, however, maintained that the rollout should be paused until the Government provides more information about the legal framework, privacy safeguards, system access and consultations undertaken during the platform’s development.

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