A number of tax relief measures are included in the Budget to provide assistance to citizens and encourage economic activity by making the import of certain items relatively cheaper. These include duty reductions on frequently imported items worth $28 million in government revenue.Generally speaking, these reductions the focus on educational supplies and equipment, and household appliances and goods.
Frequently Imported Items Made Duty-Free
The Budget includes duty reductions on household goods, school supplies and a number of other frequently imported items.
Temporary Measure Made Permanent
Last fiscal year, the Government increased the threshold for VAT zero-rating on Light Bills from those under $200 to those under $300. It was approved as a temporary measure that was to expire at the end of June.
The higher ceiling has been made permanent, and customers will continue to enjoy VAT-Free electricity bills under $300. Water Bills under $50 per billing cycle will also continue to be VAT-Free for consumers.
Other Tax Cuts
Environmental Protection and Advancement
To advance the Government's commitment to environmental sustainability, several tax measures have been customised to not only protect the environment, but also to increase environmental awareness across all islands.
Customs Duty Reductions
In strategizing our revenue efforts, we are cognizant to consider both the vulnerabilities in our country and the citizens that are most affected by these vulnerabilities, as well as the necessary action that will garner the resources we require. Though striking a balance between the two can prove challenging, at times, we are, and will remain committed to putting Bahamians first as we work to better this country."
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