FNM: Govt. Must Explain Decline in VAT Receipts

NASSAU, BAHAMAS – Members of Opposition raising concern about the reported decrease in value added tax collections over the past two consecutive months, compared to the same period in 2021.

The Free National Movement issuing a statement Thursday, noting that according to the government’s 12 month Fiscal Snapshot 2021/22 report, VAT revenue for the month of June 2022 was $13,.7 million (or 14 percent) less than what was collected in June 2021.

The FNM statement notes that the government’s monthly budget report released Thursday shows for July 2022, VAT collections were some $37 million (or 26 percent) less than it was in July 2021.

“This is in spite of the fact that the economy in 2022 has rebounded substantially compared to last year with tourism and employment numbers almost reaching prepandemic and pre-Dorian levels. Is this why this July report was so delayed?,” the FNM questions.

“This fall off in VAT revenue is even more concerning given this government’s increased spending when we in the FNM have consistently called on them to exercise prudence and restraint.”

Kwasi Thompson, the shadow minister for finance says, “the government must explain why for two consecutive months, the VAT receipts are significantly down even though the economy is significantly stronger and the government has in place an announced revenue enhancement team?”