Tax holiday being given so that nationals can make hurricane preparations

For the first time since it was rolled out in The Bahamas, the government is giving nationals a one-month break from the Value-Added Tax (VAT).

The one month VAT holiday will take place next month and is being implemented to allow for hurricane preparations.

Prime Minister Dr Hubert Minnis, who made the announcement, declared that “this will assist Bahamians and residents to enjoy VAT-free shopping on a range of critical hurricane supplies and equipment”.

Pointing out that last year his administration introduced legislation permitting the finance minister to provide VAT holidays up to two times per year for up to 30 days for specific reasons, the prime minister told Parliament that his government is undertaking a VAT holiday for hurricane preparations during the month of July.

He disclosed that, for the second year, there will be a back-to-school VAT holiday ahead of the new school year, thus providing Bahamian households with VAT-free shopping on a range of school supplies as they get their children ready for the new academic year. The VAT holiday provided millions of dollars in savings across the country and is a boost for Bahamian businesses.

Emphasis on hurricane preparation

The prime minister emphasised the need for Bahamians to prepare for the new hurricane season, which began on June 1.

“Mr Speaker, the hurricane season began yesterday, June 1, and lasts until November 30. I remind Bahamians and residents to begin their hurricane preparations,” Minnis told the House of Assembly.

Referring to the VAT holiday in July, Minnis remarked: “This will assist Bahamians and residents to enjoy VAT-free shopping on a range of critical hurricane supplies and equipment… . So, my message to everyone is that they should use the month of July to get their homes and businesses ready for the hurricane season. Take advantage of the savings and avoid the rush.”

He reminded Bahamians that the VAT holidays are only applicable for eligible items purchased inside the country from local wholesalers and retailers.

According to the prime minister, “we want people to shop at home, so that this money stays at home and benefits Bahamian businesses and, by extension, all of the employees of these commercial enterprises”.

The finance minister, who also happens to be the prime minister will provide the details of the dates and the items to be included for VAT-free shopping.