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Bahamas Government’s structure of taxation is antiquated and inadequate to meet the needs of modern governance

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#Nassau, June 23, 2018 – Bahamas – Acting Prime Minister and Minister of Finance, the Hon. K. Peter Turnquest said in The Bahamas, the government’s very structure of taxation is antiquated and inadequate to meet the needs of modern governance in the 21st century.  A tax system with traditionally heavy reliance on customs duties and, more recently, excise taxes that apply solely to goods is clearly deficient in a world where services have come to dominate goods in terms of relative economic importance, the Acting Prime Minister said.

He was speaking at the Institute of Chartered Accountants of the Caribbean’s 36th Caribbean Conference of Accountants held at Atlantis, Friday, June 22, 2018.

Acting Prime Minister Turnquest said countries in the Caribbean region have traditionally relied on import duties as the main source of revenue.  However, he said the development of the CARICOM Common External Tariff (CET), and global trade liberalization, more generally, have convinced the region to shift towards domestic revenue sources, such as value added tax.

“The introduction of VAT has been the most important reform of the regional tax system, according to the International Monetary Fund (IMF).  The IMF has further shown that VAT is considered the best instrument to replace a myriad of inefficient taxes, broaden the tax base, and generate a stable source of revenue for governments across the region.”

The Acting Prime Minister said with the introduction of VAT in January 2015, the Government correspondingly reduced its dependence on revenue from customs duty and excise taxes.  He said today, VAT accounts for 40 per cent of total revenue, while trade taxes contribute 24 per cent towards total revenue.  Prior to the introduction of VAT,trade taxes accounted for well over 50 per cent of revenue.

Acting Prime Minister Turnquest noted that for a long time, The Bahamas was able to coast along with a tax structure that essentially hid the taxes from consumers.

“When you buy anything in The Bahamas, that item might have a 45 per cent or 65 per cent customs duty hidden in the cost of goods sold.  We all know it is there, but it feels benign as this form of indirect tax is not disclosed at the point of purchase like value added tax; it does not come off your pay check like an income tax; and it does not skim off your profits like a corporate tax.”

He explained that governments, in the past, could raise duties as much as they felt like, with minimum protest and complaint because those taxes do not show up on bills.  They are hidden.  Individuals only feel them in an abstract way, knowing that the relative cost of living in The Bahamas is high.

He said earlier this week, when Prime Minister, Dr. the Hon. Hubert Minnis concluded the budget debate in Parliament, he spoke about these hidden taxes and how they are largely responsible for making goods so expensive in The Bahamas.

The Acting Prime Minister said the old structure that was reliant on trade taxes was also responsible for Bahamians being so resistant to the idea of direct taxation.

“As a culture, we are not used to this form of tax, and our companies are not used to the financial scrutiny and discipline that is demanded by a more robust tax system.

Acting Prime Minister Turnquest said, “The introduction of VAT at 7.5 per cent in FY2014/15 forced many companies to adapt.  It forced all Bahamians to adapt.  Notably, we did so with minimal disruption, and I am confident we will similarly survive the 4.5 per cent increase that was initiated by the new budget.”

 

By: Llonella Gilbert (BIS)

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Bahama Brass Band Invitation Sparks Heritage Debate Ahead of TCI Constitutional Holiday

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Turks and Caicos, August 20, 2026 – The planned participation of the Bahama Brass Band in the Turks and Caicos Islands’ inaugural Constitutional Holiday celebrations on August 30 has sparked public debate over culture, heritage and the historical contributions of Turks and Caicos Islanders abroad.

Organizers defended the invitation, saying the band’s inclusion is intended to highlight the deep historical ties between the two countries and honor Turks and Caicos men who helped establish and develop the institution in Grand Bahama.

According to the organizers, the Bahama Brass Band began in 1955 in Pine Ridge, Freeport, with Turks and Caicos Islanders, including the late Deacon Reuben Hall Sr. of Middle Caicos and Jenkins Williams and Mervin Hendfield of North Caicos, among those who helped build its foundation. The band eventually grew to more than 50 men.

The organizers also pointed to the participation of Turks and Caicos men in The Bahamas’ Independence celebrations on July 10, 1973, arguing that their contributions became part of Bahamian history while maintaining strong connections to their homeland.

Supporters say bringing the band home represents an opportunity to honor those pioneers, showcase their regional influence and expose younger generations to an important part of Turks and Caicos history.

However, concerns raised publicly described the invitation as potentially disrespectful to local culture and heritage. Organizers acknowledged those concerns, apologizing to anyone who felt overlooked or offended, while maintaining that no disrespect was intended.

The committee said the event should ultimately unite rather than divide, presenting the band’s history as evidence of the reach and resilience of Turks and Caicos heritage.

PHOTO CREDIT: Bahamas Brass Band

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CBC Supports Opportunities for Young Bahamian Basketball Players

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NASSAU, Bahamas — Caribbean Bottling Company (CBC), local producers of Dasani products, proudly sponsored the fifth annual, Caribbean Hoopfest.

The tournament brings together Bahamian high school basketball teams and visiting teams from the United States for a competitive showcase at the Kendal G. L. Isaacs Gymnasium.  Following its inaugural year at the Kendal G. L. Isaacs gym and last year’s event at Loyola Hall, the tournament returned to the Kendal G. L. Isaacs gym this year.

During the weekend tournament, CBC kept athletes well hydrated with in-kind donations of Dasani Water, Powerade and Minute Maid Juices.

During the tournament’s final day, CBC provided additional support by offering Sprite No Sugar samples and inviting attendees to participate in its Spin the Wheel for a chance to win exciting prizes.

CBC was proud to support this incredible event, which provides young Bahamian athletes with valuable exposure to U.S. basketball scouts and coaches. This opportunity gives them the chance to earn scholarships, continue their education, and pursue their basketball careers in the United States.

Event organizer, Donald Francois shared his appreciation for CBC’s support.

“I want to express our sincere appreciation for Caribbean Bottling Company, who has been a tremendous supporter and an important part of the success of our program. Without CBC’s support, Caribbean Hoop Fest would not be able to function at the level it does today. And without Caribbean Hoop Fest, we would not have been able to provide the opportunities that have helped young Bahamian athletes gain exposure and pursue educational opportunities in the United States,” he expressed.

Since the program’s inception, several Bahamian student-athletes have been selected for scholarship opportunities, highlighting the tournament’s growing impact on the development and advancement of young basketball talent in The Bahamas.

They are: Kelvin McDowells – Guard, Wodson Antoine – Power Forward, Justin Lafleur – Guard and Sean John – Guard.

After another successful edition of the tournament, Francois shared what he hopes he and Caribbean Bottling Company can achieve in the future.

“Our vision is bigger than basketball. We want to use the platform of Caribbean Hoop Fest to educate, develop, and create opportunities for young people and their families throughout the Bahamas. With individuals and organizations committed to our mission, we believe we can continue to grow the program and make an even greater impact,” Francois said.

For more details on community support, events and new products visit Caribbean Bottling Company at www.cbcbahamas.com today.

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More Bahamians Accessing HIV, STI Care Through NHI

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NASSAU, Bahamas — More Bahamians are accessing HIV and sexually transmitted infection-related healthcare through National Health Insurance, a trend the NHI Authority says should be viewed positively.

NHIA stressed in an August 6 statement that its 2025 figures measure healthcare utilisation, not newly diagnosed infections. They include beneficiaries screened, treated, monitored or receiving follow-up care, including people diagnosed previously.

“Increased utilisation of these services should be viewed as a positive development,” NHIA said.

The Authority pointed to “greater enrolment and use of NHI, improved access to screening and testing, continued treatment and monitoring of existing conditions, and increased willingness to seek medical care.”

The development comes amid a mixed three-year HIV picture. New diagnoses rose from 130 in 2023 to 156 in 2024, before declining to 142 in 2025.

NHIA said increased utilisation demonstrates that more beneficiaries are accessing needed healthcare and actively managing their health, reinforcing the importance of screening, early diagnosis and continued treatment.

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