NASSAU, Bahamas — Progressive Liberal Party leaders said if successful in the next general election they will reduce value added tax to 10 percent for one year as part of an economic plan that involves supporting a minimum wage increase, significantly expanding social assistance in the country and reducing the cost of energy by 30 percent, The Tribune reported on March 8.
PLP Leader Philip “Brave” Davis and Deputy Leader Chester Cooper unveiled their economic plan at The Balmoral Club on Sunday. They were accompanied by candidates who have been ratified for the next general election.
Mr Cooper said a Davis administration would decrease VAT for one year, after which the rate would be reassessed.
“This is not a huge difference,” he said, “but it will put consumers in a position to afford a little more of what they need to get by, which will help get the economy going again. The government receipts are likely to increase as more transactions will yield more VAT payments.”
Although Mr Cooper said VAT will be reduced to 10 percent “across the board,” it is not clear if the party plans to remove VAT exemptions from breadbasket and other items. The party has traditionally advocated for maintaining as few exemptions as possible so as to keep the rate low and broad.
Mr Cooper said the PLP would recommend to the National Tripartite Council that the minimum wage be increased to $250 per week in the private sector.
“Our goal is to phase in a liveable wage,” he said, “so that everyone who works is able to live with dignity and in a way that is acceptable in a modern Bahamas.”
Asked about the consequences of increasing the minimum wage at a time when businesses are reeling from the COVID-19 pandemic, Mr Cooper said PLP officials have analysed the matter. See full Tribune article at http://www.tribune242.com/news/2021/mar/08/plp-aiming-lower-vat-and-raise-minimum-wage/?news
