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Country Rankings - Bahamas

  • Feb 21, 2013   Bahamas: adds a tax

    The Bahamas is to have a VAT, so why am I congratulating it? Because a VAT is a more trade-friendly tax than the excise taxes it replaces. I'm not sure that the Bahamas would necessarily have taken this step if it had been left to its own devices; it's happening because the various regional initiatives such as CARICOM, of which The Bahamas is a member, point towards a tariff-free single market. You could say that VAT merely replaces equivalent tariffs, but that's not really so: if, for instance, imported materials are turned into a product that is eventually exported (zero-rated) then that does support trade; and even domestically a VAT is better than the cumulation of tariffs and sales taxes that can make imported goods so expensive. (By the way, is The Bahamas it? them? her? It's the The that causes the problem, implying that there are multiple Bahamas when it's clearly one country or jurisdiction or whatever it is. The Philippines and The Seychelles are other countries ending in 's' and they have the same issue. Why not The Mauritius, then?)
    Source: http://www.lowtax.net/asp/story/front/Bahamas_To_Introduce_Value_Added_Tax____59784.html


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