The Impact of the Cost of Living on Businesses and Households in The Bahamas
Reduce Value Added Tax (VAT) on Fuel to Provide Financial Relief to Businesses and Households in The Bahamas
By The Hon. Dr. Hubert A. Minnis
The Government speaks about the surplus, strong tourism numbers and a growing economy. But the question is: are Bahamian families feeling it?
The cost of living continues to put pressure on households. Families are dealing with higher electricity and fuel costs, living paycheck to paycheck, and power outages that can mean spoiled food and damaged appliances.
Government must show compassion and provide meaningful relief.
I am proposing:
• Remove VAT from diesel to provide relief to our fishing, construction and manufacturing industries.
• Reduce VAT on fuel to 5%.
• Reduce VAT on electricity to 5% for businesses and 0% for residential customers.
• Encourage employees who can work from home to do so one or two days per week, helping families reduce transportation and fuel costs.
These are practical measures that can help soften the impact of high fuel and electricity costs.
A strong economy must ultimately translate into relief for the Bahamian people.
