Bowe: Make Tax Burden Equitable

NASSAU, BAHAMAS – A top banker says Bahamians need to be prepared to pay for the things they want the government to provide.

Jared Higgs tells us more.

Fidelity Bank CEO Gowon Bowe says there are three key elements when it comes to tax reform in The Bahamas.

Value Added Tax (VAT) brings in the lion’s share of the country’s revenue, compared to other taxes. Bowe says if we are going to fix the tax system in the country, one of the things that has to happen is that the system must be more fair.

Critics of vat have long said it is a regressive tax that is more of a burden on poorer Bahamians.

Bowe says any tax reform has to be balanced with the need to protect the financial services industry, even though that sector has been greatly reduced over the years due to sanctions from groups like the European Union.

The last two governments in power have both raised taxes with the Christie administration introducing VAT at 7.5% and the Minnis administration increasing the rate to 12%. Prime Minister Philip Davis has promised to decrease VAT to 10%.