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Today’s Top Headlines

Bahamas Endorses VAT In 2014/15 Budget

by Mike Godfrey,, Washington

26 June 2014

The Bahamas Government has passed its 2014/2015 budget, confirming the introduction of a value-added tax and improvements to the administration of existing taxes to support deficit reduction.

The budget foresees an increase in revenue of USD305m, to USD1.77bn. This increased revenue will come from the introduction in January 2015 of a VAT regime with a 7.5 percent headline rate, as well as the enhanced collection of import tax and real property tax. As a result of the measures, the deficit is due to fall to a pre-crisis low.

Meanwhile, the Government hopes to keep expenditure stable. Michael Halkitis, the State Minister for Finance, said on delivering the budget that expenditure will rise by just USD2m, but debt servicing costs will rise by USD48.55m. "This clearly demonstrates that the Government has had, since coming into office, very tight controls on expenditure," he said.

TAGS: Finance | tax | value added tax (VAT) | Bahamas | interest | international financial centres (IFC) | budget | offshore | Tax

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