Tax Increases to Raise over $100M

Friday May 28th, 2010
Bahamas Prime Minister, Hubert Ingraham

Bahamas Prime Minister, Hubert Ingraham

The Government is hoping that the tax increases revealed in the 2010/2011 Budget will generate "just over $100 million" in extra revenues, said Prime Minister Hubert Ingraham.

Mr Ingraham said the Government expected the increase in hotel room taxes from 6% to 10% would "probably [generate] one-third of the increased revenue we are seeking to get".

He added, "The next biggest item we expect to get through will be [Stamp Duty] from real estate transactions, around the same kind of number. About one-third of these measures will not impact on local businesses, but will impact on international clients and companies."

Unveiled in the 2010/2011 Budget, was a 1% increase (from 1%, making it 2%) on Government Stamp Duty tax on Bahamas real estate transactions across the board (apart from those involving first-time home buyers). The Government was granting these purchasers exemptions worth between $4-$5 million per year.

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