On the 6th December, 2013 the Ministry of /Finance released the - TopicsExpress

On the 6th December, 2013 the Ministry of /Finance released the IDB’s study on the economic and social impact f VAT in The Bahamas. A copy of the report is available on the government’s website bahamas.gov.bs/VAT. The study presents the impacts of alternative rates for VAT in combination with corresponding alternative compensating cuts in custom tariffs and excise rates. The study predicts that the introduction of VAT, along side other reforms to reduce the public debt, would have POSITIVE economic and fiscal benefits. These returns would be magnified further if accompanied by a temporary but well integrated increase in public spending on programs to assist the poor and vulnerable in society, as the government already intends to do. There are no significant short-term negative outcomes that are expected from the introduction of VAT. Domestic economic activity would remain essentially unchanged from its present uptrend. However, the pace of economic activity is forecasted to strengthen steadily thereafter in comparison to the status quo.

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