NASSAU, BAHAMAS – As the government moves to tighten liquor license requirements, officials say the new regulations aim to curb black market activity and address an uptick in crime linked to liquor cages. Businesses have until April 1, 2026, to repurpose their establishments to comply.
Shunda Strachan, Acting Controller of Inland Revenue, addressed concerns about the black market during a virtual info session on Wednesday, noting it already exists. “There’s a strong black market now, where goods are coming in, without the requisite duty being paid. You have liquor that is not the actual brand, being sold as the brand. Lots of things are happening out there that we are aware of, and this is going to help bring some of that, if not all, but some of it for sure, in line.”
Effective January 1, the sale of alcohol from window “cages” and take-away restaurants will be prohibited. The ban also extends to supermarkets, convenience stores, and mobile bars, which will no longer be issued permits to sell alcohol.
Strachan responded to calls from the Liquor License Association for businesses whose licenses may be terminated to have a chance to adjust. “An opportunity has been given. Initially, we were going with the premise that we will start enforcement on the 31st of December when licenses expire. But if you are familiar, business licenses actually have a three-month grace period. So while the license expires on the 31st of December, there is that three-month grace period that goes to the 31st of March when payment is due. And so we will allow businesses until the 1st of April to repurpose and get their premises suited. Truthfully, enforcement won’t commence until the 1st of April. So that’s the window right there.”
Strachan also clarified which establishments fall under the new requirements. “While the cruise ship that is in port is exempted, as is an airline that sells the little bottle, the private destinations are not exempted. The private destinations have to go through the same registration process and we’ve already met with. They will be a part of this as well, as well as the hotels. We’ve already met with those groups, and they understand what is required of them.”
Addressing safety and compliance concerns from liquor operators, Strachan noted: “Of course there are concerns. They think it will be a challenge with the cages. Some of them have raised concerns with regards to safety, but then there’s the other side or flip side of that same safety argument where from our partners, the Royal Bahamas Police Force, has said there has been an uptick in crime and unsavoury behaviour because of the cages where people now go, congregate, hang out, get in fights and that type of thing. So yes, the liquor entities have raised some concern, but we also have some of them that have been very supportive.”
Strachan noted that at least one leading operator has expressed support for the rules. “There was one in particular who was very known and very strong, I guess a leader in the liquor industry who came out and supported the legislation, saying that back in the day the rules were in place, heavily enforced, and it worked well. And so in his statement, he made it clear that this is needed and that because the industry seems to be just running wild, there definitely needs to be some sort of restrictions put in place to get it back in line.”
Strachan emphasized the importance of inspections for establishments that have changed over time. “Some existing businesses would, of course, have had business licenses over many years, and over many years, many changes would have been made to their premises. Some of those changes may not have been properly regulated or allowed and so we’re going to go through all of it. You should be starting to be trying to start afresh to clean up whatever needs to be cleaned up.”
She concluded by calling on public support for the initiative. “This is a very huge task that has been assigned to the Department of Inland Revenue. We need your help. We need the help of the general public, because this is not a Department of Inland Revenue’s law or policy. It is the government’s policy or our country’s policy. And it is a policy or really a challenge for us to clean up our liquor industry. We’re going to need all hands on deck in order to do it. It cannot be done by the Department of Inland Revenue alone.”
