VAT increase may cripple construction industry

 

BCA President, Leonard Sands.

Contractors are among the latest groups sounding off on the value-added tax (VAT) hike.

The Bahamas Contractors Association (BCA) said Wednesday that it is concerned that banks will not increase funding for mortgages to facilitate the 67 per cent VAT increase.

BCA President Leonard Sands said that the increase in VAT can potentially shrink the local industry as a result of reluctance by banks to increase mortgage funding.