New VAT Rate “Will Have A Positive Impact On Our Bottom Line”

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THE BAHAMAS – With the upcoming VAT reduction on food items from 10% to 5%, many are wondering how this will affect their wallets. Private citizens aren’t the only ones affected by this shift, as larger charities, like the Bahamas Red Cross, will also experience the change at checkout.

Edison Sumner, President of the Bahamas Red Cross, shared that while the VAT reduction may not seem significant to individual consumers spending a few dollars a week, over time, the cumulative effect could be meaningful. He noted that the reduction from 10% to 5% represents a 5-point drop, which could have a positive impact on both average consumers and larger organizations like the Red Cross.

As for the direct impact on the Bahamas Red Cross, Sumner stated that the organization is making projections to understand how the VAT reduction will affect their purchasing ability. While the Red Cross purchases various supplies beyond just food, the VAT reduction could allow them to purchase more in some areas. Sumner expressed hope that the savings from food purchases might help offset costs in other parts of their inventory.

Sumner emphasized that any effort by the government to reduce food costs should be welcomed. He believes that for organizations like the Bahamas Red Cross, which spend a significant amount on food supplies for their welfare and meals on wheels programs, this reduction will have a meaningful impact on their bottom line, providing them with better buying power.