NASSAU, BAHAMAS — The introduction of a personal income tax is not on the Davis administration’s agenda, according to Economic Affairs Minister Michael Halkitis.
In its recent full Article IV report on The Bahamas, the Washington D.C.-based International Monetary Fund (IMF) encouraged this nation to leverage the G-20/OECD initiative for a 15 percent minimum global corporate tax to develop and implement a tax system tailored to the country’s needs.
Addressing reporters at a press conference held at the Office of the Prime Minister, Halkitis emphasized: “The IMF proposed the implementation of an income tax on high earners. However, such a significant shift in our tax structure would necessitate extensive consultation and consensus-building.”
The IMF recognized the challenges associated with introducing corporate and personal income tax systems in The Bahamas, given the absence of a historical tax framework. The implementation of such taxes would require substantial investments in personnel training and technology. The government disagrees with the IMF’s recommendation to introduce a personal income tax targeting the top 10 percent of earners and other reforms to achieve its 25 percent revenue-to-GDP goal.
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