NASSAU, BAHAMAS – Communications Director in the Office of the Prime Minister Latrae Rahming asserted Monday morning that the focus of the International Monetary Fund’s (IMF) report, which recommended several tax increases, should be on how the report lauded government’s approach in bringing about economic recovery since assuming office in 2021.
Rahming spoke to reporters on Wednesday morning, hours after officials got wind of the international economic watchdog’s report which recommended a 10% V.A.T. increase.
Rahming insisted that the Davis administration “does not intend to make any additional increases to V.A.T.”
He argued that the IMF’s recommendations “are not new”, adding that he suspects those recommendations were made during the former Minnis-led administration as well.
Rahming added that the country’s economy has seen positive strides without government imposing any additional taxes or increases to existing taxes, he said the economic gains have come from taking an aggressive tax enforcement approach.
However, while The Davis administration lowered VAT from 12% to 10%, there was a 10% increase on breadbasket and other items that were initially exempted from the tax regime during the previous Free National Movement (FNM) government.
Additionally, while there were no other tax increases, residents have been grappling with an increase in fees.
Local fishermen also voiced their grievances after boat registration fees were increased at the start of the 2023/2024 fiscal year. However the Ministry of Transport reduced those fees due to immediate pushback.
