NASSAU, BAHAMAS — Free National Movement (FNM) Shadow Minister of Finance, Kwasi Thompson, has renewed his call for the government to completely remove Value Added Tax (VAT) from essential items such as healthy food, medication, feminine hygiene products, and baby supplies.
Thompson’s appeal follows similar statements from FNM leader Michael Pintard and former Minister of Finance Peter Turnquest. The calls come in response to Prime Minister Philip Davis’s recent announcement that VAT will be reduced to 5 percent on most food items starting in April 2025.
While acknowledging the upcoming VAT reduction, Thompson described it as a “long overdue response” that offers only “limited relief” to Bahamians who have faced economic hardship for years. He criticized the reversal of a policy implemented under the Minnis administration, which had completely removed VAT from breadbasket items, medications, and feminine hygiene products. The Davis administration reinstated VAT on these items shortly after taking office.
Thompson echoed his party’s position, highlighting the opposition’s ongoing efforts to urge the government to adopt VAT exemptions on essential items.
“Two years ago, we provided examples of countries that implemented similar policies to address rising living costs,” Thompson stated, adding that the Progressive Liberal Party (PLP) had ignored these suggestions, choosing instead to delay action while Bahamian families faced prolonged financial challenges.
He further called for a comprehensive economic policy to drive sustainable growth. Thompson emphasized the need for the government to present a detailed fiscal plan that outlines how its initiatives will be funded while identifying areas for reducing unnecessary spending to prevent fiscal mismanagement.
