BREAKING | VAT elimination on breadbasket items
The government will eliminate value-added tax (VAT) on all breadbasket items, with the exception of sugar, effective August 1, Minister of Finance Peter Turnquest announced in the House of Assembly today.
Turnquest said this would mean the elimination of VAT on butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, bread, tomato paste, baby formula, soups, broth, baby food, condensed milk, soaps, fresh milk and mustard.
The government will also eliminate VAT on residential property insurance, the finance minister said.
Turnquest, who was presenting the budget communication, added that the government will waive VAT on residential electricity bills at or under $100, and water bills at or under $50.
He said this measure will assist approximately 30,000 Bahamas Power and Light (BPL) customers, and 43,000 Water and Sewerage Corporation customers.
“As I indicated this will help the most vulnerable in our communities,” Turnquest said.
The government will also increase the customs personal travel exemption from $300 to $500. Residents will be able to claim exemption twice a year.
VAT will also be eliminated on medicines.
Education: Benedict College, BA in Mass Communications