Bahamas News
Bahamas Government’s structure of taxation is antiquated and inadequate to meet the needs of modern governance
#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)
RBC Royal Bank (Bahamas) Limited (“RBC”) is pleased to announce the recent appointment of Kerryl-Lyn King-Henry as Country Manager and Area Vice President (“AVP”), Personal and Commercial Banking, Turks & Caicos Islands (TCI).
In her new role as Country Manager and AVP, King-Henry will take on full responsibility for the bank’s operations, strategy, and development in the TCI market, with a strong focus on solidifying partnerships with the Government, regulatory bodies, and the local community.
King-Henry brings to the role a dynamism influenced by nearly 25 years of industry experience. Prior to her new appointment, she served as AVP of Business Banking in Trinidad and Tobago. She has held progressively senior roles within both personal and commercial banking, as well as various functional units.
King-Henry holds a Master of Business Administration (MBA) degree, with a specialization in Leadership, FinTech and Big Data Analysis, in addition to a Bachelor’s Degree in Business Administration. Further enriching her professional profile, Kerryl-Lyn is a certified John C. Maxwell Coach, Trainer, Teacher, and Speaker. Her passion for leadership and development is matched by her commitment to community service, as she actively volunteers her time and leverages her professional expertise to mentor and support others. “
Kerryl-Lyn’s extensive experience and proven leadership capabilities make her the perfect choice to lead our operations in the Turks & Caicos Islands,” said Ericka Rolle, RBC’s Managing Director and Vice President, Personal Banking, The Bahamas and TCI.
“Her commitment to excellence, combined with a genuine passion for community engagement, aligns perfectly with our Bank’s purpose of helping clients thrive and communities prosper. We are excited to see the positive impact she will undoubtedly bring to her new role,” she added.
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