NASSAU, The Bahamas – Prime Minister and Minister of Finance the Hon. Philip Davis said, on March 6, 2024, that when it came to the introduction of new taxes, he wished to reiterate that the government will not introduce new taxes that will directly impact Bahamian families.
While there is a need to consider reforms to our regressive tax regime, which currently sees lower-income people spending more of their income on taxes than higher-income people, we are not considering the introduction of personal income taxes or any other income-related taxes at this time,” he said, during the Opening Contribution to the Mid-Year Budget Debate 2023/2024, in the House of Assembly. “Instead, our approach is focused on ensuring that those who can afford to pay their taxes live up to their obligations to the government.”
Prime Minister Davis added: “This is what Bahamians have wanted for years. People have often said that before the government introduces any major new taxes, they would like to see better enforcement and collection of the existing taxes so that we are maximising opportunity for revenue generation under the current system. This is exactly what we are successfully doing now.”
He noted that decisions and priorities were what budgets were all about.
“We’ve made an important decision to draw a line in the sand when it comes to the collection of taxes from those who have avoided their responsibilities for years despite being among the wealthiest people and businesses in our nation,” Prime Minister Davis stated.
He continued: “I know there are some who are angered by our approach. They’re thinking, ‘How dare we go after the elite?’ Some people have been evading their business license fees, their customs duties, and their real property taxes for so long, it now feels like they’re being targeted when we ask them to finally pay what they owe. As the quote goes: ‘When you’re accustomed to privilege, equality feels like oppression’.
“But this is a New Day. And we are building a new, fairer Bahamas.”
Prime Minister Davis pointed out that the world “has taken notice” of the ways his Government handled its affairs differently, too.
“That is why, more than ever before, our voice is being included in international affairs,” he noted. “We are being invited by leaders of countries and top executives in multi-national funding agencies to participate in conversations of global importance.”
“We are leading the way on climate change, climate justice, and climate reforms,” Prime Minister Davis added. “And we are standing up for Bahamians on the international stage.”
He noted that The Bahamas had joined with other countries to hold the US accountable for the flow of illegal weapons into its borders because “we cannot ignore the role that guns manufactured in the United States play in the high levels of gun violence we see on our streets.”
“We have joined with other developing nations to decry the unfair application of international standards and moving goalposts related to financial services,” Prime Minister Davis stated.
He added: “And we have successfully lobbied for the United Nations, instead of the OECD or EU, to be the leading international body in developing standards. Our Attorney General Ryan Pinder, was instrumental in reversing the folly of the Minnis administration’s handling of the economic substance reporting portal that landed us on the EU’s blacklist. Thanks to our efforts and advocacy, he will now sit on a committee charged with developing fair international standards at the UN.
“Thanks again to our close work with the International Labour Organization, we are the first country in the entire region to launch a second-generation Decent Work Country Programme, which has enabled us to launch our National Apprenticeship Programme this year.”
Prime Minister Davis pointed out that his Government was attracting investments from new regions like the Middle East and establishing relationships “in new regions – expanding our financial services outreach to the Asian market and fostering diplomatic ties with African nations.”
“This is the most traction we’ve ever seen internationally and we will keep the momentum going,” he said.
