One of the greatest transgressions that the Minnis administration committed against the Bahamian people upon coming to power was when they increased Value-Added Tax (VAT) from seven and a half percent (7.5%) to twelve percent (12%).  They did this after telling the people that taxation was a lazy man’s way to raise revenue and they were heavily criticized and ridiculed by the people of the country, even those that put their trust in them and voted for them and also by the opposition at the time; a Philip ‘Brave’ Davis led Progressive Liberal Party (PLP).  This is notably one of the “nails in the coffin” of the Minnis administration.

The Progressive Liberal Party (PLP) in opposition promised to do better; as they claimed that the Minnis led Free National Movement (FNM) government, was having no consideration on the less fortunate amongst us and was burdening them with the increased VAT rate.

“Govt. approves NIB rate hike” – The Nassau Guardian

Excerpt from this article; “The Cabinet of The Bahamas has green-lighted a National Insurance Board (NIB) rate increase, which is expected to take effect July 1, The Nassau Guardian understands.

The government has made no announcement as yet, but a 1.5 percent increase has reportedly been agreed.

Minister of State in the Office of the Prime Minister Myles LaRoda, who has responsibility for NIB, did not confirm Cabinet’s specific decision on the matter, but did indicate to reporters yesterday that a decision was made.

“That matter has been dealt with at Cabinet,” said LaRoda when asked for an update.

“We are at a decision. We have a little bit of cleaning up to do with regard to the decision that was made and we will be coming forth shortly with the direction that the National Insurance Board will go with regards to the [rise in] contribution rates and other recommendations that were made in the report that the executive management team of the National Insurance Board has recommended to the government that in their view needs to change.”

There has only ever been one NIB rate increase since NIB started in 1974 – the rate increased from 8.8 percent to 9.8 percent in 2010.

LaRoda has repeatedly said an increase for NIB cannot be avoided.

Early last month, The Nassau Guardian reported that the board of NIB wrote the government recommending that it move ahead with an increase of between three quarters of a percentage point and 1.5 percentage point to begin to save the fund from depletion in 2028 as was projected in the latest actuarial review presented in January 2022.”

Prime Minister Philip Davis said last April and again last June that a rate increase was not in the cards, but the board had recommended that the government move quickly to effect the increase in time for January 1, 2023.”

ommended that the government move quickly to effect the increase in time for January 1, 2023.”

The former Minnis administration, at one point seemed to have at least made an attempt at mitigating their “transgression” of the higher VAT rate by removing VAT from breadbasket items and medications.  The New Day Davis led Progressive Liberal Party (PLP) government has reduced VAT to 10 percent (10%), as promised and has also managed to increase the minimum wage from Two Hundred and Ten Dollars ($210) to two Hundred and Fifty Dollars ($250) per week, also as promised, but along with these ‘great” works they seemed to have also increased every other tax even putting ten percent (10%) VAT on the once VAT free breadbasket items and medication, basically negating the minimum wage increase, as that extra fifty dollars per week will now go toward increased taxes and a higher electricity rate, that came about due to the negligence of the New Day government.

Now the National Insurance (NI) rates have been increased and although it may be just one and half percent (1.5%), all knew that at the very moment that the prime minister made the statement that NI rates would not be increased, we knew to expect them to actually to be increased. 

Progressive Liberal Party fails for one reason, it is their nature.

END