The Bahamas Investor

...ply with the new legislation, which will be in effect January 1, 2015. The VAT Department disseminated the new guidance notes to complement the General VAT Guide, released on July 30, 2014. More detailed information specific to industry sectors is provided with details of situations and circumstances to be expanded and revised, based on feedback. The department stated that the documents in the Value Added Tax Bill 2014 and the draft Value Added Ta......

...umber of Caribbean islands for duty free and travel retail shopping so the VAT addition was a gamble for the Bahamian government. However, a deal struck between the country’s VAT and customs departments, and Switzerland-based tax refund specialist, Global Blue, has meant that over 60% of eligible Bahamian merchants are now signed up to give shoppers instant refunds. Michael Halkitis, Bahamian Minister of State for Finance, says: “Following the int......

...changes. “We are very encouraged by the level of the discussion in the private sector, that helps reinforce public understanding of the direction we should be going in.” In his address at the conference, which took place at the Grand Lucayan resort in Freeport, Rolle outlined the structure of VAT, how it will be implemented and possible alternatives. He rejected other means of taxation, such as payroll, property, corporate and income taxes, sayin......

...dence. Policy priorities include: • Resolute implementation of the current VAT regime with few exemptions. The authorities should resist pressures to weaken the VAT regime’s efficiency through the introduction of exemptions. Further efforts to strengthen revenues. Staff welcomes recent progress in improving revenue administration. Further steps to ensure continued success in VAT implementation include strengthening administration and establishing......

...ns to consumer comments through various meetings and the recently launched VAT hotline .” The Facebook launch is the latest in a series of efforts to reach out to the public in the consultation and communications process. Ministry of Finance representatives have met with hundreds of persons over the past several weeks visiting churches, firms, professional meetings and business associations. Presentations with interactive sessions are scheduled ov......

...troduction of the tax that was developed between the Government and the private sector. So far, revenue collections from the VAT have been buoyant and more than satisfactory in relation to our initial expectations. The fourth major component of the Government’s Medium-Term Fiscal Consolidation Plan relates to strengthening economic growth. Our plan in this area encompasses a variety of measures including strengthening our key tourism industry; pro......

...ohn Rolle telling attendees that legislation to implement value added tax (VAT) will be introduced later this year. Rolle spoke at a seminar held in the College of the Bahamas’ Harry C Moore Library Auditorium on Tuesday and outlined the government’s plans in regards to significant tax reform. He said the role of government was to oversee the business community as it collects taxes from consumers and pays those collections back to the government i......

...introduced, as of July 1, 2014, at a rate of 15 per cent, consistent with VAT rates charged elsewhere. “Such a VAT rate, in combination with the other reform proposals, would ensure that government will have access to adequate revenues streams for the future,” explained Minister of State for Finance Michael Halkitis , while speaking at a luncheon meeting of the Bahamas Chamber of Commerce and Employers Confederation . As The Bahamas negotiates me......

...ialogue. We do not have an issue with raising revenue and the government being able to fund itself, but we cannot do that at the peril of the economy,” he said. Bowe said the coalition was keen to work with the government in exploring alternatives to VAT, as it recognized the need for additional sources of government revenue. “If you are not part of the solution, you are part of the problem,” he said. “We are not adversaries [with the government].......

...aid during his keynote address at the one-day business conference. “The private sector as the primary engine of growth must be hand in hand with us as we move forward.” “Our [VAT] reform proposals are informed by detailed comprehensive studies from the International Monetary Fund and the Inter-American Development Bank . We continue as a government to study alternative proposals.” The government has commissioned a team of international taxation ex......

...e these measures are unpopular,” he said of the increase from 7.5 per cent VAT to 12 per cent, which is due to take effect on July 1. “We are in this together as we only have one Bahamas and we must adapt to be successful together. While the business community has been resistant to these changes, we are calling on you to embrace the notion of shared sacrifice.” Referencing the government’s $7.2bn debt and history of downgrades, the Minister said:......

...Minister of State for Finance Michael Halkitis says that proposed draft value added tax (VAT) legislation is expected to be completed this week, with the government pledging to introduce the new tax by January 2014.......

...of Financial Services (BIFS) Bankers’ Week and reassured the audience that VAT would be good for consumers, good for businesses and good for the economy. “A VAT system will improve tax compliance. The system has to be very transparent,” he told the audience at the seminar held at the British Colonial Hilton, Nassau. “The real benefit of the tax reform will show up when the economy recovers. This is not about some drive to do an increase in taxes,......

...Prime Minister said: “Our target is to circulate the draft legislation for VAT by the second quarter of the next fiscal year. With the introduction of VAT, along with the reduction in other taxes set out in the White Paper, we expect a net 2.2 percentage points of GDP improvement to recurrent revenue annually.” He also said that the government is committed to wide-ranging reforms of the property tax administrative system that will add one per cent......

...ry Committee. She was also commissioned to chair the Ministry of Finance’s VAT Private Sector Education Task Force, an integral part of VAT’s implementation. As local accountants begin to specialize in VAT, Davis says it is now the responsibility of regulators such as BICA, the Securities Commission, the Ministry of Finance and the VAT Department, to protect the public’s interests by ensuring individuals providing such services have the appropriat......