Bahamas Reduces VAT on Medicines and Essential Goods to 5%

The Bahamas cut VAT from 10% to 5% on medicines, medical supplies, feminine products, and diapers effective September 1, lowering household costs as retailers implement the reduced rate nationwide.
Government credits improved revenues and lower debt for enabling tax relief, positioning the measure as both immediate support for families and part of a broader, inclusive economic strategy for sustainable growth.
Priorities include expanding opportunities across islands, job creation, entrepreneurship, infrastructure investment, and workforce training to equip Bahamians with modern skills and ensure growth benefits reach all communities equally.

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