Residents Split On Government Value Added Tax Cut

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NASSAU, BAHAMAS – Residents are reacting tonight to the government’s announcement of a value-added tax cut on a range of essential items.

While some residents welcome the savings, others say it doesn’t go far enough.

In a statement released Sunday, the office of the Prime Minister confirmed that, effective September 1st, VAT on medicines, medical supplies, feminine hygiene products, and both baby and adult diapers has been slashed from 10 percent to 5 percent.


The government says the reduction is aimed at easing the burden on families who rely on these essentials.

Officials added that the decision was made possible because of a stronger economy and healthier public finances.

Today, we stood outside a local food store where I got a reaction to the announcement.

For some shoppers, the VAT reduction is a welcome relief at the checkout counter.

Sherise Miller – shopper
“ Today I can say that I have noticed some change because some items had to be reduced, especially the olive oil that I normally buy.

I normally pay about. $40 and today I’m paying 31.99. So that was a surprise. So I guess there has been some impact as it relates to the VAT.”

But not everyone is convinced the cut is enough.

Shopper
“ No. and honestly, they should have put it back to zero, like how it was before. “

Shopper
“  No, because none of those things affect me. what they need to do is decrease the price on organic and healthy items, because if you’re trying to have a wholesome diet and a healthy lifestyle is extremely expensive, “

The government maintains that as revenues increase and the national debt declines, it will continue to look for ways to make life more affordable for Bahamians.

Karen Farrington – shopper
“ I don’t think so. they want us to believe so, but i don’t think so. it’s still, it’s still saying the same thing. Everything still look like it’s going high, “

Andrea Adderley – shopper 
“ I know i think that they’re doing the best that they can. um, we as, um, the people just need to prioritize what we need over our wants, “

For now, residents remain split on whether the measure is enough to ease the high cost of living.