Bahamas News
Bahamas Prime Minister banking on 50% Food Tax reduction, Affordable Housing and Clean Energy to drive down Cost of Living
Deandrea Hamilton
Editor
The Bahamas, January 10, 2025 – Imported and store bought food will, by April 1, be less expensive in The Bahamas due to a hefty cut in Value Added Tax (VAT) announced by Philip Davis, Bahamas Prime Minister in a New Year’s national address on January 8.
“I am pleased to announce a 50% reduction in the VAT rate on all food sold in food stores. Beginning April 1st, the rate will be cut in half from 10% to 5%. This new 5% rate will apply to all food in the food stores, including fresh fruits and vegetables, baby food, lunch snacks and frozen foods. However, it will not apply to prepared foods in the deli.
This rate reduction will also apply to the importation of all items previously mentioned. The effective date is April 1st in order to give
merchants and foodstores time to make the necessary adjustments.”
For many families, the cost of food has been nothing short of shocking and the issue became a game-changing factor in deciding the recent US elections.
Bahamians have hinted at the same concerns at home.
In November 2023, former Prime Minister, Hubert Minnis and Anglican Archbishop Laish Boyd were among those calling for a decrease in VAT on bread basket items.
“The cuts in certain food duties in the budget for this fiscal year are not enough. We in the Opposition have also called numerous times for the government to remove its 10 percent VAT on bread basket items and medicines that it imposed unnecessarily,” said Minnis.
Davis says that and more is on the way.
“VAT is not the cause of the high price of food, but for those with the tightest disposable income, reducing VAT by 50% will make a difference.
This reduction will not impact our fiscal targets for this year.”
Last year, the US government estimated that U.S. food prices would increase 2.3 percent and by year end, the Food and Agriculture Organization, FAO explained that just about all food prices hit staggering levels, though some decreases were forecast.
Rice, Vegetable Oil, Meat and Dairy all increased in 2024, said the FAO, which also informed in a December 2024 report that its FFPI (FAO Food Price Index) spiked at the end of the year to 6.7% above 2023.
Additionally, the reports explained: “FAO All Rice Price Index: Rose 0.8% from the 2023 average, which is a 16-year high. FAO Vegetable Oil Price Index: Averaged 9.4% higher than 2023 due to tightening global supplies. FAO Meat Price Index: Was 2.7% above the 2023 average, with higher prices for bovine, ovine, and poultry meats. FAO Dairy Price Index: Averaged 4.7% higher than 2023, due mainly to surging butter prices.”
Bahamians felt it too and many rejected information from The Bahamas National Statistical Institute (BNSI) which conveyed the consumer price index (CPI) was down in the first quarter of last year, that The Bahamas saw an increase during summer months after which it held relatively steady, due to the slight bump, in September.
“This September 2024 remained constant with August, and followed a 0.1% increase between the months of July 2024 and August 2024. On a month to month basis, the major increases, by Group, included Furnishing and Household Equipment and routine household maintenance 3.7%, Restaurant & Hotels 0.6% along with Miscellaneous Goods and Services 0.5%. Meanwhile, the major decreases by group consisted of Food and Non-alcoholic 1.6 %, Health 0.9%, along with Education 0.4%,” informed a report from BNSI published in September 2024.
The Prime Minister acknowledged the high cost of living, which goes well beyond how expensive groceries have become. A housing crisis compounded by surging electricity bills become significant factors in the quality of life Bahamians were able to afford in 2024.
“The high cost of energy runs right throughout the economy. Important parts of our outdated electricity grid date back to before Independence. Some of them are so old that no one makes the parts to fix them anymore. But we can’t build a successful economy – and Bahamians can’t build their own success stories — if we continue to be burdened by an old, outdated, system, dependent on heavy and diesel fuels.
An unreliable system, and above all, an expensive system. You simply can’t build a 21st Century economy with 20th century infrastructure. So, we’re reforming, upgrading, modernizing. Solar panels are going to go up, and prices are going to come down. We are partnering with
Bahamian companies across our Family Islands, to meet the unique needs of each. We are going to have New Providence’s first utility-scale solar field.
We’re integrating LNG.” he said.
A special initiative was launched by Bahamas Power and Light, BPL over the holiday season. An attempt to get consumers to pay their overdue bills and see their electricity restored, when they made that effort.
Residents though are still forced to make tough choices as apartment units and real estate buys are priced too high and rent is chomping away at a large portion of salaries.
“The huge increase in costs of housing has also helped to drive up the cost of living. We’re building affordable housing, and we are piloting a Rent-to-Own programme. But while these are important, they aren’t reaching enough Bahamians yet. So even as we work to expand those efforts, we’re exploring ways to incentivize the private sector to build more. Increasing the supply of housing is the best way to see reductions in the cost of housing. We have also expanded concessions to first-time homeowners, because it’s so hard to make that big leap,” said Prime Minister Davis.
Reaction to the reduction in VAT from 10% to 5% in The Bahamas is healthy and that break will be important this year. It is forecast by the USDA’s Economic Research Service that despite a Donald Trump presidency, food prices in the United States are still expected to jump by nearly 2% in 2025.
NASSAU, Bahamas — Caribbean Bottling Company (CBC), local producers and distributors of Coca-Cola and Dasani products concluded their 10 weeklong Twist To Win campaign with four $5,000 Mall at Marathon shopping sprees.
The campaign which was available throughout the entire Bahamas allowed consumers to enter by purchasing a 20oz bottle with a yellow cap
from the following brands: Coca-Cola, Coca-Cola No Sugar, Sprite, Fanta Orange, or Fanta Grape. Each yellow-cap had a unique alpha numeric code underneath which they submitted to the Twist To Win WhatsApp number.
With each qualifying purchase, participants residing in The Bahamas were entered to win instant prizes and into a grand prize draw to win one of four $5,000 shopping sprees at the Mall at Marathon.
Participants also enjoyed exciting instant prizes such as: Airpods, JBL Speakers, premium Coca-Cola merchandise, $500 Visa gift cards and Amazon, Spotify and Apple Music digital gift cards.
Out of 76,000 plus submissions, Brian Bethel, Ashia Demeritte, Merlin Adams, and Taraceta Neely won the coveted Mall at Marathon shopping sprees at the following select stores, Kelly’s House & Home, The Sports Center, John Bull, Brass & Leather, and BTC.
Leading up to the grand finale shopping spree, Coca-Cola hosted a Trivia Showdown with the eight finalists to determine the four winners. Finalists were tested on their knowledge of World History, Pop Culture, Caribbean Bottling Company and Coca-Cola Facts!
After a few rousing rounds of trivia, the four winners were declared after each winning their spot in the shopping spree by answering their questions correctly and choosing the “Grand Prize” Coca-Cola labeled bottles at random.
The morning of the shopping spree Coca-Cola gave the winners exclusive access to the Mall at Marathon and its participating stores before
their usual operating hours. Grand prize winners were greeted with wide smiles from Coca-Cola brand representatives and morning bites before the big event.
At the start of the thirty-minute clock the grand prize winners along with each of their Coca-Cola shopping assistants ran to the various stores collecting items in their arms and carts.
Merlin Adams, a husband and father of four was proud to have executed his game-plan at the end of the shopping spree. With toys, a new phone and materials for his home from Kelly’s, Adams felt accomplished in what he gathered.
Taraceta Neely, a winner from Eleuthera collected beautiful bags for herself and relatives from Brass and Leather and Brian Bethel bought matching athletic and outdoor wear from The Sports Center for his family.
The final winner Ashia Demeritte bought linens and household items in addition to a new phone from BTC right in time for Christmas.
Caribbean Bottling Company is proud to share the real magic of Coca-Cola with the grand prize winners and the may instant prize winners across the Twist To Win campaign. For more updates on new products, promotions, and events follow www.cbcbahamas.com.
Bahamas News
The Coca-Cola Art Project Astonishes Art Lovers at The Bahamas Culinary & Arts Festival
NASSAU, Bahamas — Caribbean Bottling Company (CBC), local producers and distributors of Coca-Cola and Dasani products displayed
their astonishing Coca-Cola Art Project (CCAP), during Baha Mar’s five-day Culinary & Arts Festival. Earlier this year, Coca-Cola partnered with The University of The Bahamas’ Visual Art and Design Department for a culturally rich art competition. UB’s art students were challenged to create pieces surrounding the theme, Bahamian music.
As a result, 20 student works of art were made, with four students declared as winners at the CCAP exhibit opening in Baha Mar’s ECCHO: Art Gallery in August. To recreate the culturally stimulating magic felt at the exhibit’s premiere, the CCAP was featured at the FUZE Art Tent during The Bahamas Culinary & Arts Festival.
Nine incredible pieces of art lined the walls of the Coca-Cola Art Project, four of which included the winning pieces from Jhanaisia Cole,
with ‘Gaulin Bride’; Alyssa Pinder, with ‘Shotgun Wedding’; Nelson Gray, with ‘Untitled’; and Jaela Bowe, with the piece ‘Whims of Obeah, a Folktail’. Additionally, an intimate listening room was built. It displayed students’ artistic processes, UB Visual Art and Design representatives, and a recap of the exhibit opening for audiences.
Art enthusiasts also enjoyed premium limited-edition CCAP keepsakes at the booth. Journals which featured a collage of all 20 student submissions on the front and back cover, postcards with an art piece on the cover along with the student’s name, title, dimension and materials on the back and pens designed with the CCAP’s dynamic logo.
Throughout the art festival diverse groups of people visited the art tent taking in the displays while enjoying the artistic insights from the
listening booth.
Community and culture are always at the forefront of Caribbean Bottling Community, and it was boldly showcased during The Bahamas Culinary & Arts Festival for the third consecutive year.
For more details on the Coca-Cola Art Project, events and new products visit www.cbcbahamas.com today!
NASSAU, Bahamas — Caribbean Wines & Spirits (CWS), The Bahamas’ premier wines and spirits distributor delighted Jollification
attendees with bubbles from their Bottega and Bouvet Ladubay sparkling wines and Besserat de Bellefon champagne lines.
Located in the Monument Circle on The Retreat grounds, CWS transformed The Retreat Garden into a lush lounge with Besserat, Bouvet and their latest product addition, Bottega, during the two-day affair.
The festivities kicked off Friday during BNT Member’s Night. Guests enjoyed exclusive offerings from CWS’s catalogue, offered exclusively to members. Complimentary mixes or glasses on the rocks included El Tequileno tequila, Hard Truth whiskey, House of Angostura rum, Cross Keys gin, Nemiroff vodka and a slew of wines such as Fonesca Bin, Bottega and Besserat.
Guests also savored the ‘Jolly Paloma’ cocktail, an instant favorite made with El Tequileno tequila, Schweppes Grapefruit and Domaine de Paris rose wine. To end the night, guests were treated to branded limited-edition wine tumblers as keepsakes.
On Saturday and Sunday, Jollification attendees delighted in glasses or bottles of champagne and sparkling brut or rosé wines while taking
in the comfort of the chic lounge. In addition to purchasing bottles for onsite consumption, consumers were also able to purchase bottles as gifts whether for themselves or someone special.
The sophisticated “bubble lounge” lounge was decked with velvet couches, gold rimmed cocktail tables, blue and pink pillows, and a white floral branded backdrop created for capturing the perfect picture.
Caribbean Wines & Spirits, a historic partner of the Bahamas National Trust was pleased to support Jollification 2025 to kick off the festive season and share their expansive range of spirits.
To keep up to date with all CWS products and events, visit their website at www.cwsbahamas.com today.
