Halkitis: Unfeasible Removing VAT From Breadbasket Items

NASSAU, BAHAMAS – State Minister for Economic Affairs Michael Halkitis crushes the opposition’s calls for the Davis administration to remove value added tax from breadbasket items. Halkitis tells reporters that it’s simply not happening.

The state minister for economic affairs joining the recently reignited discussion about removing value added tax off breadbasket items after he was asked to respond to the oppositions repeated calls for the Davis administration to do just that.

In Parliament on Wednesday, Education Minister Glenys Hanna-Martin and FNM Deputy Leader Shanendon Cartwright clashed on the House of Assembly after Cartwright argued the government should reverse its decision to place VAT on breadbasket items.

The Christie administration implemented VAT in 2015 at a rate of 7.5%. Three years later, the Minnis administration increased the rate to 12% and introduced a zero-rating on breadbasket items and medication.

But on January 1, the Davis administration reduced VAT from 12% to 10% and got rid of zero-rated items.

Now in addition to addressing value added tax, Halkitis also gave an update on his recent meeting with the International Monetary Fund and World Bank.

He said the international bodies have taken notice of how the economy is bouncing back as more and more restrictions are lifting and tourism arrivals increase.