In its Budget for 2012/13, the Bahamas Government has announced that it will introduce a value-added tax (VAT), to broaden the tax base, from July 1, 2014.
The Government explained that VAT is to be introduced to offset the eventual reductions to import duty rates that will accompany the Bahamas’ accession to the World Trade Organization, and to begin to consolidate the territory’s finances.
Now the Value Added Tax, due to be imposed in the latter half of 2014, will be an effort by the government to decrease the current deficit which from my understanding stands to be over a few million dollars. As an accountant, I see the value added tax as a great opportunity for my profession to flourish. I see employment opportunities in the financial services industry; however, I also see dire financial problems for the Bahamian people. I do not believe that the average Bahamian can withstand an added tax on goods and services given our current economic climate. The article continues and states, CONTINUE READING