NASSAU, Bahamas, January 15, 2019 — The Ministry of Finance has denounced claims being circulated on social media about a possible devaluation of the Bahamian dollar and increase in value added tax (VAT) as “completely fictitious” and false.
“The Ministry of Finance wishes to advise the Bahamian public that these reports are wholly untrue,” Deputy Prime Minister and Minister of Finance Peter Turnquest assured Bahamians in a press release posted on his Facebook page Tuesday afternoon.
The release noted that the source of “this damaging social media hoax is unknown.”
It added: “The Government’s position on revenue policy for the next three fiscal years is outlined in detail in its Fiscal Strategy Report (FSR), published in November 2018. (It is available online at www.bahamas.gov.bs/finance). It states: “The Government is of the view that no further increases in the VAT rate will be entertained over the balance of its current mandate” (FSR 2018, Page 27). This position has not changed.
“The foreign exchange reserves at the Central Bank that underpin the value of the Bahamian dollar are at very healthy levels, topping the US$ 1 billion mark. This is fueled by the current strong performance of the tourism sector, from which the country earns the bulk of its foreign currency. The Bahamian dollar is under zero threat of devaluation.
“The Ministry decries the malicious use of false information and the unwarranted concerns such untruths can cause throughout the country. The Ministry encourages persons to check with informed sources whenever they encounter noteworthy “information” entering the public domain for the first time.”
