Rolle: VAT Reduction Will Bring Economic Gain

NASSAU, BAHAMAS – The Central Bank of The Bahamas is predicting economic growth in 2022, according To Governor John Rolle, who says value-added tax changes will be good for the economy.

Berthony Mcdermott reports.

The new VAT policy is expected to take effect no later than January 2022.

Central Bank Governor John Rolle says he hasn’t seen the tax models, reducing the rate of tax will result in gains.

Economic Affairs Minister Michael Halkitis said government plans to keep vat at 10 percent and announced that exceptions on breadbasket items and other categories will be removed.

The government expects to collect an additional $92.3 million in revenue with $80.5 million coming from VAT.

As the economy still struggles to rebound amid a worldwide crisis, Rolle says the Central Bank’s view is that the economy will grow mildly, by 2 percent for 2021.