House Members in Back and Forth Over VAT Reductions

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NASSAU, BAHAMAS – Wednesday’s house agenda reflected amendments to The Bahamas Red Cross Society Bill, but it didn’t take long for discussions to descend into a back and forth over the proposed VAT reductions.

The prime minister’s announcement of an April 1st tax break on groceries, forecasts a reduction in the high cost of living.

However, opposition deputy leader Shanendon Cartwright used his time on the floor to accuse the Davis administration of poor spending habits.

Shanendon Cartwright – Deputy Opposition Leader

“But you spent $60 million on travel, but you spent $280 million on consultants, they feel that there’s a serious imbalance.”

Cartwright continued, saying while Bahamians continue to grapple with the high costs of living and high prices at the grocery store, it was the former Minnis administration who reduced VAT on breadbasket items, despite having raised VAT from 10% to 12% early on in their term.

This promoted a point of order from leader of government business in the house.

Wayne Munroe – Leader of Government Business

“Mr. breadbasket was was advocating for a reduction on 25 items…what they did when they came to power, as was said, they increased VAT. If they didn’t think we should have had VAT they [should’ve] reduced it to zero on everything.”

Dr. Michael Darville – Minister, Health and Wellness

“We are speaking about providing the medication to the Bahamain population. Those suffering from chronic noncommunicable diseases, free of charge, and the suite of bills that I laid a few months ago is leading the way.”

Cartwright repeatedly pressed government members about the eleven dollars – referencing the controversial Nassau Guardian headline asserting the average Bahamian household would save only 11 dollars monthly – under these new measures.

It then prompted this response from Prime Minister Philip Davis, refuting the claims.

Philip Davis – Prime Minister

“So we reduce VAT in the first instance, 5% on groceries. Again being responsible stewarts, because when you’re reducing VAT, you have to consider whether revenue is going to be replaced. And that was replaced [you know] because we improved the management of our fiscal affairs.”