The Bahamas Will Preserve Its No-Tax Regime

by Amanda Banks, Tax-news.com, London

16 May 2001

Clearly referring to the OECD's harmful tax initiative, which blacklisted the Bahamas last year, Prime Minister Hubert Ingraham, who is confident in his country's imminent removal from the list, has publicly declared that the Bahama's "no tax" regime will remain unchanged despite pressure from some of the world's most powerful nations. Mr Ingraham gave his assurance during a speech at the Bahamas Chamber of Commerce's 31st Annual Business Awards Banquet last week.

According to the Bahama Journal, Mr Ingraham declared: 'The Bahamas will, I believe, come to terms with and adjust to global changes and find the best way forward to expand our special niche in the global economy. Let me say now however that the way forward does not in my estimation include the introduction of an income tax in this country in the foreseeable future.'

He added: 'Our success in services over the past thirty or more years, has permitted us to enjoy the third highest per capita income among independent States in the Western Hemisphere, following only the United States and Canada. Today, we can boast of higher levels of employment, increased home ownership, rising personal and household incomes, the lowest business loan interest rates in thirty years and of increased entrepreneurial opportunities and small business growth. Together, these permit and support our infrastructural and social agenda.'

The Annual Business Awards ceremony was held as part a series of promotions conducted by the Bahamas Chamber of Commerce to raise awareness of the Chamber and to acknowledge 'exceptional business persons whose outstanding contributions have assisted in the development of the Bahamas.'

During his speech Mr Ingraham also praised the Chamber for the role it played in preparing the Bahamas for its participation in the Free Trade Area of the Americas (FTAA). He said: 'I recently conveyed to Colleague Heads of Government attending the Third Summit of Heads of Government in Quebec City last month, that the FTAA process is a "hard shell" for the Bahamas. I advised that we would only be able to proceed with and remain in that initiative on the basis of our full expectation, that cooperation will extend much beyond trade and that, in the FTAA, there will be special transitional provisions to take account of our special vulnerablilities as a small service-based economy.'

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