National

GB Residents Sound Off On PM’S 2025/2026 Budget Communication

NASSAU, BAHAMAS – Prime Minister Philip Davis says relief is on the way for baby products to building supplies.

Published

6 months ago

May 29, 2025

Italia Hall

NASSAU, BAHAMAS – Prime Minister Philip Davis says relief is on the way for baby products to building supplies.

In his budget communication this week, the Prime Minister revealed a long list of VAT reductions and duty exemptions, all aimed at easing the rising cost of living.

Among the items that will now see reduced customs duties or VAT cuts: concrete and cleaning products.

Energy-efficient appliances will also benefit from reduced rates.

Additional savings will come from the VAT being slashed to five percent on feminine hygiene products, as well as prescription and over-the-counter drugs.

Zhivargo Laing, Executive Director of the Government Public Policy Institute at the University of The Bahamas and a Grand Bahama resident, says this is welcome news for many.

Zhivargo Laing – Executive Director, Government Public Policy Institute, UB
“These are all good news for people looking to save cost on items that they have to purchase.”

But not everyone is convinced. The Opposition has dismissed the budget as a pre-election gimmick, accusing the PLP of being out of touch with the everyday realities Bahamians face.

Laing also offered some perspective on the historical context of the tax changes.

Zhivargo Laing – Executive Director, Government Public Policy Institute, UB
“It is noteworthy that some of the products on which the government is reducing duty from ten percent to five percent were at one time zero percent under the former administration. So, you know, people who were enjoying the benefit of zero percent are not yet back to that level, but paying five percent versus ten percent is better. Still, there’s more analysis to be done of the budget. I don’t get excited about a transfer, and I don’t, for the simple reason that ministers of finance, historically over the years in The Bahamas, have not been very good at meeting their targets.”

The Prime Minister also reignited his stance against the Grand Bahama Port Authority, claiming that his administration is the first to truly confront the entity’s role on the island.

And with new projects like Celebration Key and a signed agreement for the Grand Lucayan Resort now in motion, some, like Grand Bahama attorney Rengin Johnson—believe that Grand Bahama is indeed on the rise.

Rengin Johnson – Attorney
“The island of Grand Bahama has received one of the best times since I’ve been living in The Bahamas.”
“Every single investor, in my humble opinion, was very transparent and committed to come here and invest, bringing income and creating a wonderful experience where we return to the old days, when people had three jobs at a time.”

But for many, the proof will be in the execution.

Grand Bahama resident C. Allen Johnson says he doesn’t believe the budget was focused on Grand Bahama at all.

C. Allen Johnson – Resident
“The things that were promised over the last three years for Grand Bahama, we haven’t seen much of them come to fruition, nor have we seen any type of implementation strategies that Bahamians can buy into, especially for the economy.”
“We’re often told, ‘prepare yourself, prepare yourself’, but no one has come forward to tell us what to prepare for, beyond the announcement of investors who will be doing things for their own vision, as opposed to us having a shared vision for Grand Bahama.”