The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

THE Davis administration has denied Dr Hubert Minnis’ claim it is reducing the taxes the University of The Bahamas is exempt from paying.

“The Prime Minister has now burdened the University of The Bahamas with VAT that will have to be passed on to our young people,” the former Prime Minister said in his contribution to the Budget debate in the House of Assembly.

“This will have a negative impact on our tertiary education. If the university purchases personal items, $20m of aids, computer aids, they now have to pay tax with the new bills that are brought here.

“$2m will be paid by the university, but the budget of the university did not go up, which means that they will have to find this additional money from somewhere else.”

The Davis administration tabled an amendment bill to the University of The Bahamas Act earlier this month.

According to the bill, the amendment “seeks to maintain existing tax and duty exemptions on personal property excepting value added tax and exclude value added tax on the acquisition of real property by the board or university”.

Director of communications Latre Rahming said Dr Minnis does not understand the bill.

“The change in VAT treatment,” he said, “relates to the unlikely event the university were to sell the property.”

“The buyer would no longer be able to claim a VAT exemption on that purchase. The university has never sold the real property, so this is only clean up and standardises the VAT treatment among statutory entities.”

Meanwhile, Dr Minnis accused Mr Davis of misleading people when he said the 2023/2024 Budget would have no tax increases.

“He must have thought that he was technically keeping his promise by simply calling a tax by another name,” he said. “There are new levies and fees I guess he thinks the Bahamian people can’t understand the fine print.

“He has now burdened our ports with new and increased taxes that will have to be passed on directly or indirectly to all of us. He has now provided the legislation for the imposition of a new health and wellness levy and an immigration levy.

“Then this Prime Minister has announced the increase in NIB contributions scheduled for 2024.”