The possibility of introducing a Value Added Tax (VAT) in the Bahamas was one topic discussed at a seminar hosted by the Bahamas Trade Commission and the Caribbean Technical Assistance Cooperation last week, according to the Nassau Guardian.
The two organisations convened to discuss the impact of membership of global initiatives such as the World Trade Organisation and the Free Trade Area of The Americas on the taxation structure of the Bahamas.
Addressing the conference, Wendy Craigg, Deputy Governor of the Central Bank and co-chairman of the Trade Commission noted that the Bahamas’ traditional reliance on trade taxes would be incompatible with membership of the aforementioned organisations, especially as the FTAA is committed to eliminating tariffs on imports. Consequently, the country’s tax regime will need at some stage to be reviewed, Ms Craigg observed.
“Our goal is not to commit ourselves or the government to any particular change in the tax structure,” she told delegates. “But instead, we want to assess the status quo, increase our knowledge base of the options available to us ﾖ from the perspective of both their costs and benefits ﾖ and armed with this enhanced awareness of the issues, hopefully formulate meaningful recommendations to the government.”
VAT, a consumption based tax, is levied in many countries around the world, and is already implemented in other Caribbean nations, including Jamaica, Barbados and Trinidad.
Other speakers at the one day seminar included representatives from the IMF, CARTAC and the Caribbean Development Bank. Amongst the attendees were the Ministry of Finance, the Bahamas Institute of Financial Services, the Bahamas Financial Services Board and the Small Business Association.
by Amanda Banks, Tax News.com
