What is the outlook for government revenue?
Governments earn money from the imposition of taxes, administrative fees & fines and the receipt of grants & donations. These are used to fulfill the Government’s social and economic objectives.
Over the past 18 months, government revenue has been adversely impacted by Hurricane Dorian and COVID-19. Revenues are expected to eventually return to pre-COVID levels as the global economy recovers and supports a rebound in domestic economic conditions, especially tourism activity.
WHAT DOES THIS MEAN? This pie chart shows all of the Government's different sources of tax revenue. The Government generates the majority of its revenue through Value Added Tax (VAT) and from taxes on international trade and transactions, which includes all tourism related taxes (air departure, sea departure and plesaure vessels departure taxes)
WHAT DOES THIS MEAN? The pie chart shows the sources of all of Government's non-tax revenue. The Government generates the majority of its non-tax revenue in the form of Administrative Fees. Other major non-tax revenues include reimbursements through current transfers, rent, dividends and premiums, fees, & current claims.
WHAT DOES THIS MEAN? This table shows the amount of money collected by the Government each year in Value Added Tax (VAT) since the new tax was introduced in 2015. From its inception to present day, VAT has been one of the main sources of revenue for the Government. The significant increase in 2018/19 collections was largely due to the increase in the VAT rate from 7.5% to 12.5%.
What revenue is the Government going to forego?
The Government’s provision of tax relief through lowered duty rates and tax holidays, represents an intentional means of increasing resources available to Bahamian households and small and medium sized businesses to boost spending. Aside from addressing the direct social needs of households, this supports economic growth and employment and aligns with the Government’s Accelerate Bahamas plan.
Click the slider for more information on where the Government will forego revenue to provide tax breaks and incentives.
Click the links to download the full list of tax changes.
The budget website is inspired by a worldwide movement towards citizens budgets. Presented by the Ministry of Finance, it is a visual, interactive and less-technical version of the annual budget that promotes accessibility, inclusion, transparency and accountability.