- The Government plans to reduce VAT recovery on building projects over $1 million, which may harm economic growth and construction jobs.
- Leonard Sands, president of the Bahamian Contractors Association, criticized the proposed VAT Act amendments, saying they deter business expansion and penalize construction sectors.
- Sands suggested raising the $1 million threshold to $5 million or $10 million to reflect current construction costs.
- The VAT (Amendment) (No.2) Bill targets existing businesses and wealthy homeowners, exempting property developers involved in subdivisions.
- The Bill restricts VAT input deductions for major construction unless involved in taxable property supply, concentrating power in the VAT comptroller’s hands.
- Criteria for “major construction” include activities like dredging, land reclamation, and building infrastructure, with rules yet to be published.
- Sands warned that the low $1 million threshold could negatively impact large businesses needing to expand, citing AML Foods’ project as an example.
Source: tribune242.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
