Halkitis: VAT Won’t Go Back Up

NASSAU, BAHAMAS – It’s unlikely that Value Added Tax (VAT) will go back up to 12.5% once it is reduced to 10%, according to Economic Minister Michael Halkitis.

Halkitis says government anticipates collecting $90 million over what the Minnis Administration projected for the fiscal year.

Jillian Gray has that.

It’s a campaign promise fulfilled according Economic Minister Michael Halkitis.  

Come next year, VAT will be reduced to 10%. Halkitis going a step further saying, that rate may become permanent, once reduced. 

Government is projecting capital expenditure will be down by 54 million dollars as revenue increases 92 million dollars over what was projected in the pre-election budget. 

With that Halkitis says reducing VAT to 10% won’t affect the government’s revenue collection.  

Breadbasket items and medicine which were exempt from VAT when the Minnis administration increased the tax to 12.5% will now have VAT added back when the tax is reduced to 10%. 

This hot button issue is expected to be discussed extensively. The rationale is that people will have more money to save, invest, spend and stimulate the economy once VAT is reduced. 

The economic minister says overall they’re expecting a reduction in the cost of living.