National

Residents React: “Yeah He’s Saying It, But We Want to See It in the Food Stores”

NASSAU, BAHAMAS – Residents are sounding off on the prime minister’s announcement that there will be a 5% cut in value-added tax on some grocery store items.

Published

11 months ago

January 9, 2025

Joshua Williams

NASSAU, BAHAMAS – Residents are sounding off on the prime minister’s announcement that there will be a 5% cut in Value-Added Tax on some grocery store items.

The announcement came during a national address by the prime minister Wednesday night.

The prime minister’s unexpected announcement of a 5% cut in Value Added Tax on grocery items, was the buzz around town on Thursday.

During his first national address for the year, Prime Minister Philip Davis said he hopes the VAT reduction will help reduce prices at the cash register.

The 5% rate slash will apply to all food in the food stores, including fresh fruits and vegetables, baby food, lunch snacks, and frozen food.

Our Joshua Williams visited a local grocery store where he asked residents what impact the reduction would have on them.

“He could say it out his mouth, but we wan see it on this,” said Fabian Smith.

“I think that it would be beneficial for a person with a family like me you know what I saying, I could go and stretch a lil $50, stretch a lil $100, but right now you know things kinda tough.”

This will be the second time the Davis-led government reduced the VAT rate.

In 2022, the government reduced VAT from 12% to 10%, but added VAT to items that were previously VAT free.

This student, who works part-time at a food store, says the change will help.

“That would positively impact things because people always complain about money, people work minimum wage jobs, don’t make $300 a week, a lot people have children like it really will positively impact The Bahamas”, said Shauna McCaury.