- Prime Minister Philip Davis announced a 50% reduction in the VAT rate on all food sold in food stores
- The new 5% rate will apply to fresh fruits and vegetables, baby food, lunch snacks, and frozen foods
- The reduction will not apply to prepared foods in the deli
- The rate reduction will also apply to the importation of mentioned items
- The effective date is April 1st to allow time for adjustments
- The reduction will not impact fiscal targets for the year
- The government previously lowered VAT from 12% to 10% to avoid causing hardship
- The high cost of living is making it difficult for Bahamians to make ends meet
- Structural issues causing high prices are being addressed, starting with energy sector reforms
- Outdated electricity grid is a major contributor to high energy costs in the country
Source: opm.gov.bs
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
