The Free National Movement (FNM) demands that the PLP come clean about a hidden 10% tax on Bahamian businesses buried in the Value Added Tax (Amendment) (No. 2) Bill, 2025.
This amendment quietly strips VAT-registered businesses of their right to recover VAT on major construction projects over $1 million, unless the project is tied to taxable real estate sales. It’s a massive tax on investment, masked as reform, and the Prime Minister said nothing about it in his Budget Communication.
Why was this kept from the public? Why wasn’t this massive new cost on local businesses disclosed?
This move will drive up the cost of doing business, delay expansions, kill jobs, and raise prices for Bahamian consumers. From contractors and clinics to schools and manufacturers, no sector is spared.
The FNM will not support this secretive tax grab. Bahamians deserve transparency, not backdoor taxation. We call for its immediate withdrawal and full public consultation.
The Davis Administration’s new Business Development Incentives Bill is a slap in the face to small and medium-sized Bahamian businesses.
By restricting tax concessions to companies with over $50 million in annual turnover, this bill shuts out more than 95% of Bahamian businesses, the real drivers of jobs, innovation, and local investment.
Let’s be clear: this is a betrayal. While the government hands out incentives to big, well-connected enterprises, it offers nothing but more taxes on the small business owners who are fighting to grow, create jobs, and sustain communities across The Bahamas.
This isn’t reform; it’s favoritism.
The FNM stands for inclusive, transparent tax reform that rewards productivity, supports Family Island development, and empowers all Bahamian businesses, not just the few at the top.
We reject this elitist policy and call for a tax regime that puts small businesses first.
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