Government plans to reduce mandatory Value-Added Tax (VAT) registrants by 1,000 firms and focus all their attention on the 2,700 largest firms that account for 98 per cent of Bahamian GDP.
The government is sending a strong message to potential tax evaders by setting up a new court to prosecute VAT evaders. Businesses will have a host of new responsibilities and obligations when VAT comes into effect.
The Bahamian tax payer is surely entitled to know what to expect and how he will be affected by the new tax policy.
Britain’s Prime Minister David Cameron said it is no longer fair “to refer to any of the Overseas Territories or Crown Dependencies as tax havens.”
Ex-FNM Finance Minister said the Government should “rethink” its plan to introduce a 15 per cent Value Added Tax in mid-2014.
The Minister did not speak the truth to the media when he said the government never came up with the new cruiser fees for pleasure boats.
“Serious concerns” have been raised over the increased Customs fees/taxes levied on the aviation industry and government has been called on to “urgently” revisit its policy.
Some developed nations are still dragging their economies down with far higher corporation tax rates than emerging economies, according to research by UHY.
It is impossible for Bahamian businesses to assess how VAT would impact them without seeing the legislation and revised Tariff Schedule.