The Organization for Responsible Governance (ORG) warns that broad VAT exemptions in the Bahamas can undermine fiscal sustainability, fairness, compliance, and public trust. It calls for evidence‑based, transparent policy design, minimal exemptions, targeted social protection, and the implementation of FOIA and whistleblower protections.
ORG urged that VAT exemptions be minimal, evidence‑based, and complemented by targeted social protection mechanisms rather than broad, politically driven changes.
The policy brief was released on 16 January 2026.
ORG suggested implementing FOIA, whistleblower protections, publishing fiscal impact statements, and establishing structured stakeholder consultation protocols.
ORG warns that broad exemptions can disproportionately benefit higher‑income households, reduce revenue reliability, create distortions, and lower pricing transparency.
ORG argues that transparency, achieved through FOIA and public disclosure, builds trust and legitimacy in the tax system.
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Bloomberg Tax · about 2 months ago
The Bahamas Prime Minister announced that unprepared food will be zero-rated for VAT effective 1 April 2026. The change applies to all unprepared food items sold within the country.
VatCalc · about 2 months ago
The Bahamas will apply a 0% VAT rate to unprepared essential food items from 1 April 2026, replacing the 5% reduced rate introduced in 2025. This follows a broader VAT reform that lowered the standard rate from 12% to 10% in 2024, aiming to ease cost‑of‑living pressures for consumers.
Caribbean National Weekly · 2 months ago
The Bahamas Prime Minister announced that VAT on unprepared food will be removed, effective 1 April 2026, bringing the rate to 0%. The announcement also includes a reduction of the overall VAT rate from 12% to 10%, aiming to ease the cost of living for Bahamian households.
Eye Witness News · 2 months ago
The Bahamian government has announced that from 1 April 2026, VAT on unprepared food will be reduced from 5% to 0%, covering items such as fresh produce, baby food, snacks and frozen foods. Additionally, owner‑occupied duplexes and triplexes will qualify for a residential property tax exemption, expanding earlier property‑tax relief measures.
EWNews · 2 months ago
The Bahamas will remove VAT from all food items previously taxed at 5% effective April 1 2026. The zero‑rate will cover unprepared groceries such as fresh produce, baby food, frozen foods, meats, staples, milk and eggs, but excludes prepared meals and restaurant food. The change aims to ease cost‑of‑living pressures.
VatCalc · 3 days ago
Belize has legislated mandatory e-invoicing and e-receipts for B2B transactions, effective from 2027, as confirmed in the 2026/7 Budget. The country’s General Sales Tax (GST) remains at a 12.5% standard rate, with registration required for businesses exceeding BZD 75,000 in annual taxable supplies. Monthly GST returns are due by the 15th of the following month.
