By NICO SCAVELLA
Tribune Staff Reporter
nscavella@tribunemedia.net
THE government is seeking to eliminate the 7.5 per cent Value Added Tax (VAT) on ancillary fees paid for education services in the country, Prime Minister Perry Christie said yesterday.
The proposal is one of 16 “tax relief and rationalisation measures” the government is proposing to execute, Mr Christie announced while delivering his 2016/2017 Budget Communication in the House of Assembly.
According to VAT legislation, education services, including tuition-funded courses at schools and programmes leading to graduate and undergraduate degrees, are exempt from the tax. However, ancillary fees, which are typically requisite fees levied by academic institutions outside the actual cost of tuition, are not covered by the exemption.
Using the College of the Bahamas as an example, VAT would be removed from the institution’s non-degree related fees.
Mr Christie also said the government is proposing to allow for the waiver of real property tax arrears for owner-occupied properties with values less than $250,000, which he said could potentially benefit over 41,000 homeowners. Mr Christie also said the government is seeking to allow the real property tax concessions granted to residential properties last year to be extended to commercial properties with the exception of “properties which are now subject to collection”.
Mr Christie also said the government is proposing to “reduce or eliminate” the duty on a number of household grocery items, including appliances and parts, prepared turkey, ham, beef and chicken meat, macaroni, spaghetti, ice cream, biscuits, waffles, cakes and pastries.
He also said the government plans to eliminate the duty on baby clothes and reduce the duty on used clothing; eliminate the duty on costume jewellery, perfumes and certain leather goods, as well as reduce or eliminate the duty on various building materials such as plywood, sheet rock and cement.
Mr Christie also said that $10m in interim payments for former CLICO (Bahamas) policyholders have been made as of last month.
Mr Christie said 3,078 cheques totalling $10.2m in payments had been collected as of April 29. Conversely, he said a total of $2.1m - spread amongst 1,649 cheques - remains uncollected by former policyholders.
Comments
Sickened 7 years, 10 months ago
People always told me that I was a fool for paying my property tax; saying that eventually the government will either negotiate down to any amount or waive it completely. I now see that I am indeed a fool.
Sickened 7 years, 10 months ago
We all know that PLP's are an ENTITLED bunch. This has now been proven by their government waiving their real property tax.
cmiller 7 years, 10 months ago
From what I'm reading, this is just what they have planned. When its a done deal. I'll believe it. Elections coming and these people will say ANYTHING.
Publius 7 years, 10 months ago
This headline is incorrect. VAT has not been removed from baby clothes and food. These reporters sit in Parliament, have the Budget in front of them and still come back to their newsrooms and file incorrect copy.
DDK 7 years, 10 months ago
ELECTION COMING!
Honestman 7 years, 10 months ago
"Mr Christie also said the government is proposing to allow for the waiver of real property tax arrears for owner-occupied properties with values less than $250,000, which he said could potentially benefit over 41,000 homeowners"
Seriously, there is no hope left for this country!!!!
sheeprunner12 7 years, 10 months ago
Beware of the PLP voodoo economics this year
NassauBoy77 7 years, 10 months ago
Let me see if I got this correctly. They are patting themselves on the back for removing taxes on Education where it should not have been in the first instance?
Then they are waiving tax arrears for people who ducked paying taxes in the first place instead of just an exemption from real property tax for a year or two?
Honestman 7 years, 10 months ago
Mr Christie also said the government is proposing to “reduce or eliminate” the duty on a number of household grocery items, including ..... macaroni, spaghetti, ice cream, biscuits, waffles, cakes and pastries.
What a screwed up administration! Just reduce the duty on all the items that are contributing to our record levels of Type 2 diabetes. Makes perfect sense if you are pandering to your uneducated voter base.
ohdrap4 7 years, 10 months ago
Not only that.
they are eliminating environmental levy on used tires., in other words-- that is all people will be able to afford-- if anything the levy should be higher on used tires.
they are also reducing the duty on used clothing.
seems that want people to import junk, and increase polution.
what they should do is eleiminated duty on fabric so it becomes cheaper for people to sew clothes, especially uniforms, and create employment.
then they elimnated uty on costume jewelry. costume Jewelry? no one eats that!!!
BMW 7 years, 10 months ago
They need an excuse for NHI. They are a clueless bunch.
Islandboy242242 7 years, 10 months ago
Hmmm. Reduce or eliminate duty on junk food but exercise equipment is still 45% duty. Definately focused on a healthier Bahamas...
Required 7 years, 10 months ago
The Parliamentary Elections Act makes bribery an offence. #JustSayin'
ED 7 years, 10 months ago
Over all, PATHETIC. Yes eliminate duty on meats and other items that help meet people's basic needs but to reduce or eliminate duty on costume jewelry! ,macaroni, spaghetti, ice cream, biscuits, waffles, cakes and pastries - is this a joke!?! Who needs to be encouraged to eat these items? What about encouraging our people to eat healthier by making it more affordable. I assure you if healthy options were more affordable, more people would choose to purchase them for their families. I try to feed my family as healthily as possible but it is VERY difficult, the cost of living is too high and now more than ever. I am sick and tired of leaders that have no vision for the health & future of our country. They throw crumbs at us and expect us to be happy citizens.
proudloudandfnm 7 years, 10 months ago
Yeah but C-10 fee went from 10 dollars to 25% value of the cargo.
So you import a 40' container filled with 1 million worth of cargo. Some agent in Miami misspells your name on the b/l. Well now you need a C-10 to correct your bill of laden. Customs charges you $250,000.00 to use their C-10 form.
So now you've paid your quarter of a million to correct your b/l.
Now go clear it and pay duty and VAT.
This hike increase will cost jobs...
Islandgirl 7 years, 10 months ago
WTH???? Perry why don't you retire out man? You won't even be around to fully realize the effects of your mismanagement of our country.
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