business@tribunemedia.net
FRIDAY, JUNE 27, 2025
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VAT reforms ‘direct tax’ on business expansion t N SFDMBJN SFTUSJDUJPO DPOUSBSZ UP 7"5 DPODFQU t $POUSBDUPS DIJFG GFBST CVTJOFTT QSPKFDUT ATISJOL t "OE CSBOET UISFTIPME TFMFDUFE AJODSFEJCMZ MPX By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamian Contractors Association’s (BCA) president yesterday argued that VAT reforms effectively amount to a new tax on business expansion that will also “shrink” construction activity in that area. Leonard Sands told LEONARD SANDS Tribune Business that restrictions preventing Bahamian companies from recovering VAT paid on the building materials and supplies purchased for expanding their physical premises, which are due to take effect from next Tuesday, July 1, will turn the globally-established mechanism for how the tax works on its head. VAT is ultimately to be fully paid by the end-user or consumer, with businesses allowed to offset the tax paid on their inputs against this sum. However, in this case, the BCA president argued that these curbs - contained in the VAT (Amendment) (No.2) Bill - will bar companies from recovering VAT on their legitimate expenses, thus in effect creating a “direct tax” on business expansion without saying so. Ryan Pinder KC, the attorney general, in his Wednesday Budget debate contribution in the Senate, confirmed that “the Bill restricts input VAT deductions on major construction projects” and signalled that the Government has no plans to alter course over this. Kwasi Thompson, the Opposition’s finance spokesman, also previously told this newspaper that
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‘Great deal of stress’ in boating fee fall-out t "CBDP SFTPSU PXOFS 3PMM PVU OFFEFE NPSF UJNF AN Abaco resort proprietor says the boating fee t A)FMM JO IBOE CBTLFU reforms fall-out is “causing BMXBZT BGUFS ACBOOFS ZFBST me a great deal of stress” with a US maritime body yesterday warning The Bahamas could t 64 NBSJUJNF CPEZ XBSOT lose its “boater-friendly” reputation. PG AEBNBHFE DPOmEFODF Molly McIntosh, the Bluff By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
House Beach Resort and Marina’s proprietor, told Tribune Business that she has already been contacted by long-standing repeat visitors warning they will not return due to concerns over new and increased boating fees plus the uncertainty surrounding what other reforms accompanying the 2025-2026 Budget mean and their impact. While agreeing that the Government needs to collect its fair share in fees and taxes from a sector that
commercially exploits The Bahamas’ waters, she also joined those arguing that the tourism industry and its boater clients should have been “given a little more time on the roll-out” to understand the reforms, the intent behind them and what is required so as to avoid the mass confusion that now exists. Ms McIntosh, voicing optimism that Bluff House will enjoy a “banner year” in 2025, with May and June
having surpassed the previous 2019 high, nevertheless told this newspaper that it “scares the hell out of me” that every high seems to be swiftly followed by a low. She urged The Bahamas to focus on growing boating visitor numbers, arguing that the upfront fees pale against the VAT generated by such tourists. She spoke out after the US-based National Marine Manufacturers Association (NMMA) weighed in on The
Bahamas boating fee controversy in a letter sent to Prime Minister Philip Davis KC yesterday. It warned that “sudden regulatory shifts” threaten to “damage confidence” in this nation if unveiled and implemented without proper industry consultation. Echoing the Bahamas Hotel and Tourism Association (BHTA), and the industry’s three Promotion Boards, Frank Hugelmeyer, the NMMA’s president and chief executive, said: “We are especially concerned that these changes were introduced without stakeholder input from the marine industry, tourism operators and the international boating community. “Sudden regulatory shifts risk undermining long-standing partnerships and could damage confidence in The
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Residents voice concerns on East Bay Street hotel/marina By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net NEIGHBOURS of a proposed East Bay Street condo hotel and marina project last night voiced concerns over potential noise pollution, invasion of privacy and adequate parking. Eastern New Providence residents, speaking at a Town Planning Committee hearing the planned Grantanna Holdings Company project,
expressed fears that it could result in similar “parking trauma” to that suffered at Goodman’s Bay as a result of the GoldWynn development. Ms McKinney, who described himself as as close neighbour, questioned how many staff will be employed, as well as the maximum number of persons likely to be residing at the property and visiting the restaurant.
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RENDERING OF THE GROVE MARINA
Merchants demand proof on counterfeit alcohol ‘rumours’ By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net LIQUOR store merchants yesterday urged the Bahamas’ consumer watchdog to prove that rogue operators are selling counterfeit alcohol - a “rumour” said to have been circulating for around a year. Brent “Bookie” Ferguson, owner of BookieBren Wholesale & Retail Liquor Store, said he has experienced persons “trying to call my fish stink” after Senator Randy Rolle, the Consumer Protection Commission’s chairman, told the Senate during the 20252026 Budget debate that the agency will be investigating
and sanctioning merchants selling counterfeit alcohol. But Mr Ferguson, who said he purchases his inventory from legitimate Bahamian and international distributors, said that while packaging may sometimes be different that does not make it counterfeit. He spoke of others within the industry starting rumours to bring rival companies down. “Someone came here the other day trying to call my fish stink,” Mr Ferguson said. “You can’t call the fisherman’s fish stink. Every fisherman got their fish. I had some product that was packaged from, I think, Canada. But guess
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Ex-BREA chief: Don’t hit us on unpaid VAT By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net A FORMER two-time Bahamas Real Estate Association (BREA) president, now the country’s ambassador to Morocco, has backed arguments that the industry should not be held liable for unpaid VAT on property sales. William Wong, speaking to the media yesterday, said that although he understands the Government’s rationale for reforming the VAT Act given that some parties may be “finagling” how the 10 percent levy is
paid on property sales, this practice does not involve real estate agents as tax payments and the execution/ recording of conveyances is handled by attorneys. “I think what entails is that they’re trying to put a lot of the paperwork on real estate agents, and that lot of stuff doesn’t affect us because the lawyers handle a lot of stuff. All we do is we get the client all set up, they go to the lawyers, and that’s it, we are finished,” said Mr Wong. “But I understand the Government, too, fells there is some finagling with how this VAT is paid, how
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