Press Statement by Prime Minister Philip Davis on the Newest VAT Cut
STATEMENT: Effective September 1, the Government reduced VAT from 10 per cent to 5 per cent on a range of essential items: medicines, medical supplies, feminine hygiene products, and baby and adult diapers.
Medicines will now cost less at the pharmacy. Parents are now paying less for baby supplies. Women are now paying less for feminine care products. Families caring for elderly loved ones are now paying less for adult diapers. Reducing VAT to 5 per cent on these essential items is about easing the pressure on households who need it most.
This relief is possible because the economy is stronger and government finances are on a sounder footing. As revenues grow and debt comes down, we are making life more affordable for Bahamian families.
This progress is the result of choices we made to rescue the country from crisis and to drive a strong recovery. But our goal has never been recovery alone. Our mission is to build a bigger, more inclusive economy where economic gains are broadly shared. That is why we are expanding opportunities island by island, creating more jobs, supporting entrepreneurs, investing in roads, docks, and airports, modernizing our electricity grid, and preparing Bahamians with education, training, and upskilling so they can succeed in today’s economy.
Our continued efforts and focus are to build on this progress, widening the circle of opportunity, lowering costs for families, and ensuring growth reaches every island and every community.
