New Bahamas Gov’t vows to cut VAT, increase wages & pensions

#TheBahamas, October 13, 2021 – In The Bahamas Speech from the Throne, there were key pledges made and plans outlined by the newly elected government.  Among those announcements receiving the loudest applause were the decrease in VAT, the increase in pensions from the NIB and the increase – gradually – in minimum wage.  The PLP Government, led by attorney Brave Davis of Cat Island and businessman, Chester Cooper of Exuma are moving the country toward a livable wage.

“The government will increase the pension for Senior Citizens; increase the benefits for persons with disabilities and ensure that the provisions of the Persons with Disabilities (Equal Opportunities) Act are fully implemented and enforced.  It will introduce legislation for the protection of consumers and increase the minimum wage phasing in a livable wage.”

The New Day campaign was hinged on a drop in the VAT tax, which had been raised under the previous FNM Administration.

“Also a priority — despite the weak economic outlook, the government will amend the VAT Act to lower the rate of VAT across the board to 10%,” relayed H.E. Cornelius Smith, Governor General of the Commonwealth of The Bahamas.

The Governor General delivered the Speech from the Throne, which is the Government’s transformative plan for the new parliamentary and fresh governance season.

For the Bahamians and audience which filled the convention center hall at Baha Mar, anything higher that the current $5.25 cents per hour or $42 per day and the $297 per month for pensions was welcomed.

Social plans include a second chance for minor offenders and amplifying the power of Urban Renewal.

“In addition there will be re-introduction of the RISE programme “which provided substantial benefits to many families”; relief to mortgage and rent payers to prevent an increase in and reduce homelessness; legislation to provide for the establishment of an Urban Renewal Authority to improve the quality of life of residents throughout The Bahamas; creation of a national ‘Second-Chance’ jobs programme that allows those who have served prison time to enter the job market; and the expungement of records of those young people convicted of minor offences related to the use of marijuana, so that they may more easily re-join the formal, productive economy.  “

A Bahamas Invest agency will be formed and airports in Exuma, Grand Bahama and North Eleuthera top the list of refurbishment with potable water also listed as critical to development.

“…transformation of approval processes and launch of BahamasInvest to retain competiveness and mobilise local and international investors to grow the economy; a return of Tourism to pre-COVID levels by harnessing existing markets; development of an investment portfolio for the Family Islands to promote an investor-friendly environment with a focus on an investment portfolio for specialised industries; infrastructural upgrades throughout all of the Islands of The Bahamas in an effort to create investment portfolios; expansion of the provision of potable water and implementation of a national strategy for the management of water as a natural resource; introduction of a new and progressive Building Code to increase resilience in the face of Climate Change; and advancement of the airports in Exuma, Grand Bahama, and North Eleuthera and development of all major airports across The Bahamas through Public Private Partnerships.”

The Bahamas parliament opened with a new government administration on Wednesday October 6.