The government has been urged to extend real property tax to Bahamians living in the Family Islands, rather than raise taxes on the real estate industry that could further stifle growth in an effort to meet the International Monetary Fund’s (IMF) deficit-reducing prescriptions.
David Morley, Morley Realty’s president, told The Tribune that before government considered raising real property taxes to satisfy the IMF, which wants to see the Bahamas immediately reduce its fiscal deficit by 2 per cent or some $100 million, it should look to extend the scope of this particular tax to include Bahamians living in the Family Islands.
Although the government last year eliminated the 1 per cent real property tax on homes valued between $100,000 to $250,000, provided that past payments were up to date, current regulations stipulate that those liable to pay this tax are only Bahamians living in New Providence and foreigners living anywhere in The Bahamas.
Mr. Morley said that all Bahamians should be taxed equally, and anyone who owns a property more than $250,000 should be liable to pay tax whether they live in New Providence or not.
Source: Yolanda Deleveaux, The Tribune
